Why Has Inequality in the Philippines Declined? A Two-stage Hierarchical Inequality Decomposition Analysis by Location and Education

Takahiro Akita, Raquel Celeste () and Sachiko Miyata
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Raquel Celeste: Department of Social Welfare and Development

No EMS_2023_07, Working Papers from Research Institute, International University of Japan

Abstract: The Philippines has been successful in reducing inequality over the last two decades. This study conducts a two-stage hierarchical inequality decomposition analysis by location and education to explore the determinants of declining expenditure inequality using the Family Income and Expenditure Survey. In the period 1997-2006, falling inequality among urban households with tertiary education is the dominant determinant by explaining 74% of declining overall inequality. In the period 2006-2018, falling disparity between urban and rural areas is the main determinant by explaining 42% of declining overall inequality. Falling inequality among urban households with tertiary education contributed also, but its contribution is 25%. Though expenditure inequality has declined, its level is still very high. To further reduce expenditure inequality, it is imperative to reduce inequality among households with tertiary education. It is also important to reduce inequality between education groups, particularly between households with tertiary education and those with lower education.

Keywords: expenditure inequality; Philippines; hierarchical inequality decomposition; roles of education; urban and rural dimensions (search for similar items in EconPapers)
JEL-codes: I24 I25 O15 O18 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2023-05
New Economics Papers: this item is included in nep-inv and nep-sea
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https://www.iuj.ac.jp/workingpapers/index.cfm?File=EMS_2023_07.pdf First version, 2023 (application/pdf)

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Journal Article: Why has inequality in the Philippines declined? A two-stage hierarchical inequality decomposition analysis by location and education (2024)
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