Considering TVET today: an analysis on the wage and poverty gains from technical vocational and training in the Philippines
Date
2016-06
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Abstract
In the face of persistent poverty in the Philippines, poverty eradication continues
to be a long term national goal. One possible solution to ease this pressing economic issue
is the considerable investment in human capital — in the form of technical and vocational
education and training (TVET). This study aimed to determine the impact of TVET on
income and the odds of being poor. Utilizing cross-section data from the 2012 Family
Income and Expenditure Survey, two econometric models were run: Ordinary Least
Squares Regression and Logistic Regression. With the analysis in the context of the
household, findings reveal that investing in technical-vocational education and training
significantly increases the household head’s wages and salaries as a fraction of income.
Furthermore, it significantly reduces the likelihood of falling into income poverty. TVET
is therefore a viable education track to consider especially for the poor. Policies should
then be geared towards reinforcing the implementation of TVET in the country. These
strategies could transform technical–vocational education and training as the platform
addressing the human capital needs of the poor making it a strategic contributor to
national development.
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Keywords
human capital, wage income, income poverty, technical and vocational education and training (TVET), TVET