El Nino or El Peso? Crisis, Poverty, and Income Distribution in the Philippines
Using household survey data for 1998, the authors assess the distributional impact of the recent economic crisis in the Philippines. The results suggest that the impact of the crisis was modest, leading to a five percent reduction in average living standards, and a nine percent increase in the incid...
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| Format: | Policy Research Working Paper |
| Language: | en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://hdl.handle.net/10986/19968 |
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okr-10986-199682021-04-23T14:03:52Z El Nino or El Peso? Crisis, Poverty, and Income Distribution in the Philippines Datt, Gaurav Hoogeveen, Hans absolute poverty adverse impact agricultural extension agricultural output agricultural sector Agriculture average consumption average incomes capital variables CDF commodities community characteristics consumption levels consumption module consumption modules consumption poverty cross-sectional data cumulative distribution function data analysis data availability data set demographics dependent variable Descriptive statistics devaluation distribution functions distributional data distributional impact downward bias economic growth economic indicators Economic Management economic shocks education level employment exchange rate Expenditure Survey financial crises financial crisis financial institutions forestry functional form growth rates headcount index household characteristics household composition household consumption household head household incomes household labor household level household living standards household members household survey household welfare human capital income income distribution income module income shocks increasing function inequality measures inflation infrastructure capital interest rate interest rates labor market land reform living standard living standards log income mean consumption measurement error National Statistics Office negative coefficient negative effect negative impact negligible difference observed change official estimates per capita consumption per capita income POLICY RESEARCH positive impact poverty gap poverty headcount poverty impact poverty indicator Poverty Indicators poverty line poverty lines poverty measures Poverty Reduction probability sampling proportional impact public assistance public spending random effects Real GNP real terms reducing inequality reform program relative contribution relative contributions sample households secondary data serious implications significant negative social capital social services treasury bills Unemployment Unemployment rates wages Using household survey data for 1998, the authors assess the distributional impact of the recent economic crisis in the Philippines. The results suggest that the impact of the crisis was modest, leading to a five percent reduction in average living standards, and a nine percent increase in the incidence of poverty - with larger increases indicated for the depth, and severity of poverty. The greater shock came from El Nino, rather than through the labor market. The labor market shock was progressive (reducing inequality) while El Nino shock was regressive (increasing inequality). Not all households were equally vulnerable to the crisis-induced shocks. Household and community characteristics affected the impact of the shocks. Ownership of land, made households more susceptible to the El Nino shocks, higher levels of education made households more vulnerable to wage, and employment shocks. The impact of the crisis was greater in more commercially developed communities. Occupational diversity within a household helped mitigate the adverse impact. There is some evidence of consumption smoothing by the households affected by the crisis, but the poor were less able to protect their consumption, which is a matter of policy concern. 2014-09-04T21:48:48Z 2014-09-04T21:48:48Z 2000-10 http://hdl.handle.net/10986/19968 en_US Policy Research Working Paper;No. 2466 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank, Washington, DC Publications & Research :: Policy Research Working Paper East Asia and Pacific Philippines |
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Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
en_US |
| topic |
absolute poverty adverse impact agricultural extension agricultural output agricultural sector Agriculture average consumption average incomes capital variables CDF commodities community characteristics consumption levels consumption module consumption modules consumption poverty cross-sectional data cumulative distribution function data analysis data availability data set demographics dependent variable Descriptive statistics devaluation distribution functions distributional data distributional impact downward bias economic growth economic indicators Economic Management economic shocks education level employment exchange rate Expenditure Survey financial crises financial crisis financial institutions forestry functional form growth rates headcount index household characteristics household composition household consumption household head household incomes household labor household level household living standards household members household survey household welfare human capital income income distribution income module income shocks increasing function inequality measures inflation infrastructure capital interest rate interest rates labor market land reform living standard living standards log income mean consumption measurement error National Statistics Office negative coefficient negative effect negative impact negligible difference observed change official estimates per capita consumption per capita income POLICY RESEARCH positive impact poverty gap poverty headcount poverty impact poverty indicator Poverty Indicators poverty line poverty lines poverty measures Poverty Reduction probability sampling proportional impact public assistance public spending random effects Real GNP real terms reducing inequality reform program relative contribution relative contributions sample households secondary data serious implications significant negative social capital social services treasury bills Unemployment Unemployment rates wages |
| spellingShingle |
absolute poverty adverse impact agricultural extension agricultural output agricultural sector Agriculture average consumption average incomes capital variables CDF commodities community characteristics consumption levels consumption module consumption modules consumption poverty cross-sectional data cumulative distribution function data analysis data availability data set demographics dependent variable Descriptive statistics devaluation distribution functions distributional data distributional impact downward bias economic growth economic indicators Economic Management economic shocks education level employment exchange rate Expenditure Survey financial crises financial crisis financial institutions forestry functional form growth rates headcount index household characteristics household composition household consumption household head household incomes household labor household level household living standards household members household survey household welfare human capital income income distribution income module income shocks increasing function inequality measures inflation infrastructure capital interest rate interest rates labor market land reform living standard living standards log income mean consumption measurement error National Statistics Office negative coefficient negative effect negative impact negligible difference observed change official estimates per capita consumption per capita income POLICY RESEARCH positive impact poverty gap poverty headcount poverty impact poverty indicator Poverty Indicators poverty line poverty lines poverty measures Poverty Reduction probability sampling proportional impact public assistance public spending random effects Real GNP real terms reducing inequality reform program relative contribution relative contributions sample households secondary data serious implications significant negative social capital social services treasury bills Unemployment Unemployment rates wages Datt, Gaurav Hoogeveen, Hans El Nino or El Peso? Crisis, Poverty, and Income Distribution in the Philippines |
| geographic_facet |
East Asia and Pacific Philippines |
| relation |
Policy Research Working Paper;No. 2466 |
| description |
Using household survey data for 1998, the authors assess the distributional impact of the recent economic crisis in the Philippines. The results suggest that the impact of the crisis was modest, leading to a five percent reduction in average living standards, and a nine percent increase in the incidence of poverty - with larger increases indicated for the depth, and severity of poverty. The greater shock came from El Nino, rather than through the labor market. The labor market shock was progressive (reducing inequality) while El Nino shock was regressive (increasing inequality). Not all households were equally vulnerable to the crisis-induced shocks. Household and community characteristics affected the impact of the shocks. Ownership of land, made households more susceptible to the El Nino shocks, higher levels of education made households more vulnerable to wage, and employment shocks. The impact of the crisis was greater in more commercially developed communities. Occupational diversity within a household helped mitigate the adverse impact. There is some evidence of consumption smoothing by the households affected by the crisis, but the poor were less able to protect their consumption, which is a matter of policy concern. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Datt, Gaurav Hoogeveen, Hans |
| author_facet |
Datt, Gaurav Hoogeveen, Hans |
| author_sort |
Datt, Gaurav |
| title |
El Nino or El Peso? Crisis, Poverty, and Income Distribution in the Philippines |
| title_short |
El Nino or El Peso? Crisis, Poverty, and Income Distribution in the Philippines |
| title_full |
El Nino or El Peso? Crisis, Poverty, and Income Distribution in the Philippines |
| title_fullStr |
El Nino or El Peso? Crisis, Poverty, and Income Distribution in the Philippines |
| title_full_unstemmed |
El Nino or El Peso? Crisis, Poverty, and Income Distribution in the Philippines |
| title_sort |
el nino or el peso? crisis, poverty, and income distribution in the philippines |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://hdl.handle.net/10986/19968 |
| _version_ |
1764444190050091008 |