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Author: De Guzman, Eduardo P. Jr. × Subject: human capital ×

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    Considering TVET today: an analysis on the wage and poverty gains from technical vocational and training in the Philippines
    (2016-06) De Guzman, Eduardo P. Jr.; Mendoza, Maria Nimfa F.
    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.