Pro-poor growth or poverty trap?: estimating intergenerational income mobility in rural Philippines

Kazushi Takahashi

No 382, IDE Discussion Papers from Institute of Developing Economies, Japan External Trade Organization(JETRO)

Abstract: Using an intergenerational database covering nearly a quarter of a century, we explored the degree of intergenerational income mobility among individuals who had grown up in rural Central Luzon, the Philippines. We found that the intergenerational income elasticity is significantly lower than unity, at roughly 0.23, indicating that the average income growth rate is higher for children born to poorer families. The detailed analysis, however, revealed that its magnitude significantly varies across percentiles in a U-shape. The results provide supporting evidence of multiple equilibria or poverty trap.

Keywords: Philippines; Poverty; Income distribution; Income; Rural Poverty; Economic Mobility (search for similar items in EconPapers)
JEL-codes: D31 I30 O12 (search for similar items in EconPapers)
Date: 2013-02-01
New Economics Papers: this item is included in nep-dev
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Citations: View citations in EconPapers (3)

Published in IDE Discussion Paper = IDE Discussion Paper, No. 382. 2013-02-01

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