research paper on poverty and education in the philippines

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Poverty in the Philippines: Causes, Constraints and Opportunities

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Poverty and inequality in the Philippines remains a challenge. In the past 4 decades, the proportion of households living below the official poverty line has declined slowly and unevenly.

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• http://hdl.handle.net/11540/191

Economic growth has gone through boom and bust cycles, and recent episodes of moderate economic expansion have had limited impact on the poor. Great inequality across income brackets, regions, and sectors, as well as unmanaged population growth, are considered some of the key factors constraining poverty reduction efforts.

Note: See the latest available poverty data on the Philippines.

Causes of Poverty

The main causes of poverty in the country include the following:

• low to moderate economic growth for the past 40 years;
• low growth elasticity of poverty reduction;
• weakness in employment generation and the quality of jobs generated;
• failure to fully develop the agriculture sector;
• high inflation during crisis periods;
• high levels of population growth;
• high and persistent levels of inequality (incomes and assets), which dampen the positive impacts of economic expansion; and
• recurrent shocks and exposure to risks such as economic crisis, conflicts, natural disasters,and "environmental poverty."

Key Findings

The report's key findings include the following:

• Economic growth did not translate into poverty reduction in recent years;
• Poverty levels vary greatly by regions;
• Poverty remains a mainly rural phenomenon though urban poverty is on the rise;
• Poverty levels are strongly linked to educational attainment;
• The poor have large families, with six or more members;
• Many Filipino households remain vulnerable to shocks and risks;
• Governance and institutional constraints remain in the poverty response;
• There is weak local government capacity for implementing poverty reduction programs;
• Deficient targeting in various poverty programs;
• There are serious resource gaps for poverty reduction and the attainment of the MDGs by 2015;
• Multidimensional responses to poverty reduction are needed; and
• Further research on chronic poverty is needed.

The report comprehensively analyzes the causes of poverty and recommends ways to accelerate poverty reduction and achieve more inclusive growth. In the immediate and short term there is a need to enhance government's poverty reduction strategy and involve key sectors for a collective and coordinated response to the problem. In the medium and long term the government should continue to pursue key economic reforms for sustained and inclusive growth.

• List of Tables, Figures, Boxes and Appendixes
• Acknowledgments
• Abbreviations
• Part 1 Executive Summary
• Part 2 Introduction
• Part 3 Poverty Profile
• Part 4 Causes of Poverty
• Part 5 Impacts of Poverty on Economic Growth and Development
• Part 6 Institutions and Governance in the Poverty Response
• Part 7 Summary of Key Findings and Recommendations

Additional Details

• Philippines Key Indicators on ADB's Data Library
• Poverty Data: Philippines
• Economic indicators for the Philippines
• ADB funds and products
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• Capacity development
• Climate change
• Finance sector development
• Gender equality
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KEY FINDINGS Overcoming Poverty and Inequality in the Philippines: Past, Present, and Prospects for the Future

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• The Philippines has made significant progress in reducing poverty, but income inequality has only recently begun to fall. Thanks to high growth rates and structural transformation, between 1985 and 2018 poverty fell by two-thirds. However, income inequality did not begin to decline until 2012. It is still high: the top 1 percent of earners together capture 17 percent of national income, with only 14 percent being shared by the bottom 50 percent.
• Several structural factors contribute to the persistence of inequality. The expansion of secondary education and mobility to better-paying jobs, citizen ownership of more assets and access to basic services, and government social assistance have helped reduce inequality since the mid-2000s. However, unequal opportunities, lack of access to tertiary education and a scarcity of skills, coupled with inequality in returns to college education, gendered social norms and childcare, and spatial gaps, sustain inequality.
• Inequality of opportunity limits the potential for upward mobility. While there has been considerable progress in expanding access to basic services such as electricity, safe drinking water, and school enrollment, large disparities limit the development of human capital. Inequality of opportunity and low intergenerational mobility waste human potential, resulting in a lack of innovation and a misallocation of human capital in the economy.
• While schooling is widely accessible, its quality and attainment vary by income group. Children from poorer households are less likely to be enrolled and, if they are, to reach age-appropriate grade levels. That means they are less likely to reach tertiary education, which severely constrains their earning potential and their prospects for upward mobility. With the relatively low share of workers with tertiary education, the premium for college education has remained high. Additionally, tertiary education tends to deliver much higher returns for rich than poor households, possibly due to differences in school quality or f ields of study and employment.
• COVID-19 partly reversed decades-long gains in reducing poverty and inequality. The pandemic halted economic growth momentum in 2020, and unemployment shot up in industries that require inperson work. In 2021, poverty rose to 18.1 percent despite large government assistance. The economy has begun to rebound but signs are emerging that the recovery will be uneven. Prolonged loss of income has taken a heavy toll on the poorest households. With food prices going up and a reliance on adverse coping strategies, among them eating less, there is a risk of serious consequences for the health and nutrition of children in vulnerable households.
• The shock from the COVID-19 pandemic led to a shift in the workforce to less productive sectors and occupations. Employment in wage work has notably decreased and employment in agriculture has risen. These trends have been concentrated among youth and the least educated, which suggests an uneven recovery and widening income inequality.
• The pandemic is likely to result in long-term scarring of human capital development. Over half of households estimate that their children learned from remote learning less than half what they would have learned from face-to-face schooling. The proportion increases to 68 percent in poor households. Extended distance learning is expected to have reduced the learning-adjusted years of schooling by over a full year. Learning loss, combined with the de-skilling associated with prolonged unemployment, could lead to sizable future earnings losses.
• Job polarization could further increase as the nature of work changes. Job polarization among wage workers emerged between 2016 and 2021: employment in middle-skilled occupations went down and employment in both low-skilled and high-skilled occupations went up. This pattern may rise with the transformation of jobs post-COVID-19 and could increase prevailing disparities in incomes.
• Policy can reduce inequality by supporting employment and workers, improving education access and quality, promoting inclusive rural development, strengthening social protection mechanisms, and addressing inequality of opportunity.

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Education, Microfinance, and Poverty in Philippines

Tamansiswa Accounting Journal International

6 Pages Posted: 22 Jul 2021

Benjamin Drean

Lycée George Sand, EPL du Velay

Date Written: April 21, 2021

This study investigates education, microfinance, and poverty in the Philippines using the vector error correction model (VECM) method. The test results of macroeconomic variables and bank-specific factors for Non-Performing Loans (NPLs) in the Philippines use VECM. Provides results that the NPL variable provides a positive and significant response to credit increases in the short and long term. This means that high and low credit levels lead to high and low NPL levels. The inflation variable used as a macroeconomic indicator has different effects on the NPL level in the short and long term. In the short term, the inflation variable is detrimental to the NPL level. This means that the increase in the inflation rate does not affect the NPL level. Meanwhile, in the long term, inflation has a positive and significant effect on the NPL level. That is, an increase in the inflation rate increases the NPL level. Inflation that increases this increase is caused by government policies that increase the price of goods which causes prices to rise as well. Then this can affect people's purchasing power so that the business world weakens. Resulting in hampered credit.

Keywords: VECM, Microfinance, Education, Poverty

JEL Classification: A2,M12,M2

Suggested Citation: Suggested Citation

Benjamin Drean (Contact Author)

Lycée george sand, epl du velay ( email ).

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Global Study on Child Poverty and Disparities: the Case of the Philippines

In a country where poverty is prevalent, a significant number of children are likely to be illiterate, malnourished, and prone to abuse and physical violence. The Philippines is no different. Using known indicators on education, social protection, poverty, and health, this report summarizes the Filipino children's welfare and living conditions taking account the disparities in gender, income, and geographic location. This report shows that poverty incidence among children living in rural areas is more than twice that of children living in the urban areas. Looking at the regional patterns, some regions are consistently ranked as being 'worse off' compared to other regions. All these suggest wide disparities in poverty incidence across regions and between urban and rural areas. Chapter 2 of the report describes the many facets of deprivation that could either be severe or less severe. In 2006, 18.6 percent of children or 5.4 million children were deprived of at least one of the three dimensions of well-being covered by the study, namely, shelter, sanitation, and water. The report finds some remarkable improvements in the plight of the children based on recent data and indicator estimates. The five pillars of child well-being are examined more closely in Chapter 3. The first section deals with child nutrition and highlights the fact that malnutrition is one of the underlying causes of child mortality. The section on child health, meanwhile, analyzes trends and issues on infant mortality and child immunization. Compared to its close neighbors in Asia, the Philippines posted a drastic decline in immunization rates in 2003. The section on child protection, on the other hand, cites the Philippine government's efforts to protect the rights of families and children which began as early as 1935. Another section is devoted to education and highlights various basic education indicators and trends. It narrates how the 2007 level of elementary participation rate became at par with 1990 level, thus, requiring that the 25-year millennium development target be achieved in eight years. Disparities in education outcomes were also observed in different socioeconomic dimensions. In the section for social protection, policies and programs that aim to prevent, manage, and overcome the risks that confront the poor and vulnerable people were presented. The section also suggests critical areas that should be considered in assessing social safety net programs. In conclusion, the report proposes different strategies for action using the rights-based approach. Some specific recommendations include pursuing an effective population management program; stabilizing macroeconomic fundamentals; building up data and giving due consideration to regional disparities in aid of planning, and policy and program formulation; and allocating more financial and rational manpower resources for health, education, and child protection. As regards other government programs, the report finds that it is not sufficient that budget is allocated adequately. What is crucial is proper targeting and making sure that resources are given to that segment of population where interventions are needed the most. Moreover, research works should continue to look for reasons why gaps persist, to analyze the correlation between interventions and outcomes, and to examine the interrelated forces and relationship that would strengthen the pillars of child well-being. The report ends with a view on how the role and active participation of public institutions, private organizations, communities, and individuals must be upheld and coordinated to promote the welfare of the Filipino children.

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• Corpus ID: 129265001

Child Poverty in the Philippines

• Aubrey D. Tabuga , C. Reyes , +1 author Maria Blesila D. Mondez
• Published 2014
• Economics, Sociology

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POVERTY AND THE FILIPINO MINDSET- RESEARCH PAPER - (Autosaved).docx

This research study explores on the impact of poverty from the perception of the very poor and marginalized sector of the urban and rural barangays of Zamboanga City. Based on the empirical data-based findings, there are significant indicators that indeed would lead to a logical conclusions that there exists a debilitating psycho-social malady common among the poorest of the poor sectors of our society befitting of a ”mindset” that necessitates a much needed care and responsiveness from our local authorities with the view of eradicating poverty from its roots. This mentality problem has to be addressed foremost vis-à-vis with the financial aid that is presently being implemented by our government thru the DSWD’s 4P’s program.

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Poverty in the Philippines remains a challenge. In a recent nationwide self-rated survey of the Social Weather Station, more Filipino households consider themselves poor despite the positive feedback on one of the government’s poverty alleviation programs, the Pantawid Pamilyang Pilipino Program (4PS). This qualitative study utilized a phenomenological approach to explore the reasons behind this claim. It explored the experiences of poverty from the lower class status, particularly the Pantawid Pamilyang Pilipino Program (4Ps) beneficiaries. The study revealed that norms and practices in the family might contribute to their claim of poverty, such as poor lifestyle choices, difficulty prioritizing needs, lack of parenting style, and extended family. Parents’ low education and lack of financial literacy are seen as another factor of poverty. Likewise, religion plays a part in responding to poverty. Participants assert that there is psychological comfort in experiencing poverty because...

Elmer Irene

Poverty is a phenomenon that is brought by several factors which are further aggravated by social conditioning, behavior, and practices of these marginalized folks. A grounded theory qualitative research approach was utilized to distill information relative to understanding poverty among the adolescents and elderly participants using focus group discussions as data triangulation method. Results showed that adolescents had high hopes and aspirations to escape poverty given the proper education. Yet, their actions did not complement towards the attainment of such goal. The elderly, on the other hand, believed that young people when taken the right action could escape poverty, but admitted they had failed in their efforts when they were young due to wrong actions and habits. Moreover, their contradicting practices of poverty alleviation had a direct influence on the young ones, thus, might exacerbate this dire situation. Irene's understanding poverty theory is generated explaining the understanding of persistent poverty in Samar. It is a composite of several constructs such as conditioning, the low education, the felt helplessness and habits which were embedded in the subculture of Samar people. A recommendation to adopt more mainstream behaviors, eradicate bad habits while policies should also be designed to move these marginalized communities towards an economic reform mindset is necessary.

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Poverty has been a problem in the Philippines. Corruption, unemployment, and low access to education are considered contributors to this undesirable phenomenon. Utilizing a systematic review approach, this paper aimed to describe the challenges of poverty in the Philippines, the poverty trends, and the initiatives and frameworks of the country for this problem. The review shows that the Philippines is on the right track considering the poverty trends of the country. Numerous policies and programs have been administered by the different departments and agencies to meet the "no poverty" goal of the country. Various frameworks have been formulated and updated as well. Hence, it is highly recommended that the country should remain steadfast and strengthen its monitoring and evaluation mechanisms to ensure that the country remains on the right track towards the goal. INTERNATIONAL JOURNAL OF MULTIDISCIPLINARY RESEARCH & REVIEWS j o u r n a l h o m e p a g e : w w w. i j m r r. o n li n e / in d e x. p h p / h o m e

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