1 results
Search Results
Now showing 1 - 1 of 1
Item Restricted Availment of loans: access households with unemployed heads to available government social insurance program(2014-12) Allanigue, Ana Lauren D.; Alicante, Michelle Anne C.; Solon, Jose Orville C.This paper aims to identify whether or not households with unemployed heads are able to avail of loans from social insurance programs offered by the government. Using data gathered from the 2013 Annual Poverty Indicators Survey (APIS), we analyze the determinants of the type of credit lenders from which households would borrow. We use variables related to the eligibility criteria for borrowing and control for demographic characteristics that may affect the household's decision. The borrowing model is then estimated as a multinomial logistic regression model to empirically test for the likelihood of the household's decision to avail of a loan from the government and/or private lenders. The paper is particularly interested in the employment status of the household head as used as the main explanatory variable that determines choice of credit lender. The results show that the status of employment of the household head is not a statistically significant determinant of whether or not a household can borrow from the government lending institutions. This implies that government programs are equally accessible to both households with employed and unemployed heads. On the other hand, employment status is found to be significant in determining the likelihood of availing from private moneylenders or a mix of different loan institutions. We recommend that while government social insurance programs do not discriminate against the unemployed, it may have to be re-examined to further improve access to poor borrowers.