Income and human development: a simultaneous-equations approach
| dc.contributor.advisor | de Dios, Emmanuel S. | |
| dc.contributor.author | Cabalfin, Michael R. | |
| dc.date.accessioned | 2024-11-13T08:05:40Z | |
| dc.date.available | 2024-11-13T08:05:40Z | |
| dc.date.issued | 2008-11 | |
| dc.description.abstract | Over the last 25 years of the past century, human development outcomes in the Philippines improved despite poor economic growth. On the other hand, in spite of the celebrated economic performance in recent years, recent human development outcomes have deteriorated. This study aims to determine whether the recent improvements in incomes resulted from improved household health and education outcomes, why growth has not translated to improvements in human development outcomes, and how education and health outcomes influenced each other. Using data from the Annual Poverty Indicators Survey 2002, this study employs two-stage least squares regression to analyze the simultaneous relationships among income, health and education to determine which aspect is most crucial and to identify priority policies and programs. The instrumental variable regression results reveal the following order of importance in the relationships: 1) income-to-education, 2) health-to-education, 3) education-to-income, 4) income-to-health, 5) health-to-income, and 6) education-to-health. Improvements in income clearly resulted from better education and health among the employed. Education outcomes largely responded positively to consumption. In general, school participation increased with more spending on education, food, clothing, and transportation. On the other hand, health responded only to certain types of spending, particularly spending on clothing. Primary and secondary school participation improved with better health but the endogeneity of illness to tertiary school participation reveals a positive relationship. Illness among adults may motivate rather than hinder tertiary participation. Finally, better education did not improve health outcomes. The results suggest the following priorities for government: in kind subsidies - food-for-school, uniforms, transportation - and scholarship I conditional cash transfers for the poor; improved community I school health services; workfare programs in the short-term and continuing adult entrepreneurial skills training for the longer run; clothing subsidies for the poor; improved working conditions; enhanced health education and improved student environmental conditions. | |
| dc.identifier.uri | https://selib.upd.edu.ph/etdir/handle/123456789/1186 | |
| dc.language.iso | en | |
| dc.title | Income and human development: a simultaneous-equations approach | |
| dc.type | Thesis |