The Link between Extreme Poverty and Young Dependents in the Philippines:Evidence from Household Surveys

The high level of extreme poverty or those experiencing hunger in the country is the most pressing issue that needs to be addressed by our policymakers. Official government statistics and data from self-rated hunger surveys show an increasing trend in hunger incidence among households. On the one hand, latest data from the National Statistical Coordination Board (NSCB) show that the percentage of population experiencing hunger almost remained the same from 11.1 percent in 2003 to 10.8 percent in 2009. On the other hand, the Social Weather Stations (SWS) quarterly surveys on hunger incidence show an increasing trend in the percentage of families that experienced hunger, reaching 18.4 percent (about 3.8 million households) in the 2nd Quarter of 2012. This study looks at the determinants of extreme poverty among households using the data from the Family Income and Expenditures Survey (FIES) and the household surveys of SWS. Using a logit model on the pooled data, the results show that presence of a young dependent in the household increases the probability that the household will be extremely poor, controlling for other factors. Other variables that influence the probability of the household being extremely poor are the education of the household head and percentage of cash transfer from abroad. Moreover, regional characteristics such as varying food prices and underemployment rate (quality of jobs) explain a lot about the probability of the household being extremely poor. The study shows that we cannot ignore the evidence linking population growth and poverty. Development policies aimed at addressing poverty incidence in the country must include measures that will manage the country’s bourgeoning population.