Pantawid Pamilyang Pilipino Program and labor supply: implication on benefeciary household heads' labor force participation
Date
2011-04
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Abstract
The paper explores the country's leading poverty reduction scheme, Pantawid Pamilyang Filipino Program, Program, and its potential unintended consequences with particular emphasis on the labor Data effects. Data Annual Poverty Indicator Survey Indicator Survey conducted in 2007 is employed to empirically test the existence of worker disincentive effects resulting from Using conditional cash grants. Using logistic regression to estimate the program's effect on beneficiary household heads' binary decision of working or not, the paper finds that: a) the amount of the transfer is not too substantial to impinge on the participation of the household head in the labor market, as revealed by the insignificant magnitude of the income effect; b) the final impact on the head's work decision depends so much more on the price effect of conditionality and the corresponding association among the labor of Given members, particularly between the child and the household head. Given this, 4Ps appears that the greater part of the impact of 4Ps on head's labor participation channels through the effect of conditionality, rather than the effect of the cash grants.
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Keywords
Conditional Cash Transfers, Labor Force Participation, 4Ps