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Cambridge Journal of Economics Advance Access originally published online on May 30, 2006
Cambridge Journal of Economics 2007 31(1):123-144; doi:10.1093/cje/bel015
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© The Author 2006. Published by Oxford University Press on behalf of the Cambridge Political Economy Society. All rights reserved.

Pathways out of rural poverty: a case study in socio-economic mobility in the rural Philippines

Nobuhiko Fuwa*

* Chiba University

Address for correspondence: Agricultural Economics, Chiba University, 648 Matsudo, Matsudo-City, Chiba. 271-8510, Japan; email: nfuwa{at}faculty.chiba-u.jp

Exploiting unique household panel data covering a 30-year period, this paper attempts to analyse the patterns of poverty exits by examining socio-economic mobility in a Philippines village. Macroeconomic growth was a major factor explaining poverty-exit probabilities until the early 1980s. After the 1980s, poverty exit-paths through ‘agricultural ladder’ narrowed, schooling and growth became equally important factors owing to the increased returns to schooling, and labour endowments also became important for the lower, but not upper, social strata (providing an economic incentive to have more children for the poor). Surprisingly, we find no evidence of state dependence in poverty spells once observable factors are taken into account.

Key Words: Economic mobility • Social class • Poverty dynamics • Rural poverty • Philippines

JEL classifications: D31, J62, O12, O15

Manuscript received September 10, 2004; final version received February 3, 2006.


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