Labor Supply Responses to Income Shocks Under Credit Constraints: Evidence from Bukidnon, Philippine

2.50
Hdl Handle:
http://hdl.handle.net/10755/163982
Category:
Abstract
Type:
Presentation
Title:
Labor Supply Responses to Income Shocks Under Credit Constraints: Evidence from Bukidnon, Philippine
Author(s):
Malapit, Hazel Jean; Redoblado, Jade Eric; Cabungcal-Dolor, Deanna Margaret; Suministrado, Jasmin
Author Details:
Hazel Jean Malapit, De La Salle University, Manila, Philippines, email: suministradoj@dlsu.edu.ph; Jade Eric Redoblado; Deanna Margaret Cabungcal-Dolor; Jasmin Suministrado
Abstract:
The ability of households to insure consumption from adverse shocks is an important aspect of vulnerability to poverty. How is consumption insurance achieved in a low-income setting where formal credit and insurance markets have been observed to be imperfect or missing? Because labor is often the only asset of the poor, this study attempts to measure the extent to which farm households use labor supplied to off-farm work in the face of adverse shocks and binding credit constraints. Moreover, this study investigates how this labor supply response differs between women and men. This study uses 2003 data from Bukidnon, Philippines, which is a re-survey of households from a four-round panel survey conducted in 1984-85. The 2003 data re-surveys 305 of the core 448 households in 1984/85, as well as 257 new households formed by children from the original households now living in separate households. Five categories of shocks, weather or environmental shocks; war or crime shocks; political, social or legal shocks; economic shocks; and health or household welfare shocks were examined. Through estimations done using Tobit regressions, we find that males and females respond differently to different types of adverse shocks. For both original and split households, we find evidence for labor demand constraints in both agricultural and non-agricultural off-farm jobs in response to environmental shocks, although males seem to be able to overcome such labor constraints. Also, we find that only males are able to work more off-farm jobs in response to shocks in original households, while both males and females are able to increase off-farm work in response to adverse shocks in split households. Higher education for females were highly significant in explaining days worked in non-agricultural jobs for both original and split households. Appropriate policy responses include counter-cyclical workfare programs targeted to households with high female-to-male ratios, households with high dependency ratios, and households with little or no education, as well as the provision of universal education and health care. These programs are likely to be effective in strengthening the labor endowments of households and improving their ability to cope with adverse shocks in the future.
Repository Posting Date:
27-Oct-2011
Date of Publication:
27-Oct-2011
Conference Date:
2006
Conference Host:
McMaster University
Conference Location:
Dhaka, Bangladesh
Description:
2006 International Conference: Dhaka, Bangladesh. The International Conference on the Impact of Global Issues on Women and Children, co-organized by McMaster University and the State University of Bangladesh, is an opportunity for the interdisciplinary exchange of development expertise and will be held in Dhaka, Bangladesh from February 12-16, 2006.
Note:
This is an abstract-only submission. If the author has submitted a full-text item based on this abstract, you may find it by browsing the Virginia Henderson Global Nursing e-Repository by author. If author contact information is available in this abstract, please feel free to contact him or her with your queries regarding this submission. Alternatively, please contact the conference host, journal, or publisher (according to the circumstance) for further details regarding this item. If a citation is listed in this record, the item has been published and is available via open-access avenues or a journal/database subscription. Contact your library for assistance in obtaining the as-published article.

Full metadata record

DC FieldValue Language
dc.type.categoryAbstracten_US
dc.typePresentationen_GB
dc.titleLabor Supply Responses to Income Shocks Under Credit Constraints: Evidence from Bukidnon, Philippineen_GB
dc.contributor.authorMalapit, Hazel Jeanen_US
dc.contributor.authorRedoblado, Jade Ericen_US
dc.contributor.authorCabungcal-Dolor, Deanna Margareten_US
dc.contributor.authorSuministrado, Jasminen_US
dc.author.detailsHazel Jean Malapit, De La Salle University, Manila, Philippines, email: suministradoj@dlsu.edu.ph; Jade Eric Redoblado; Deanna Margaret Cabungcal-Dolor; Jasmin Suministradoen_US
dc.identifier.urihttp://hdl.handle.net/10755/163982-
dc.description.abstractThe ability of households to insure consumption from adverse shocks is an important aspect of vulnerability to poverty. How is consumption insurance achieved in a low-income setting where formal credit and insurance markets have been observed to be imperfect or missing? Because labor is often the only asset of the poor, this study attempts to measure the extent to which farm households use labor supplied to off-farm work in the face of adverse shocks and binding credit constraints. Moreover, this study investigates how this labor supply response differs between women and men. This study uses 2003 data from Bukidnon, Philippines, which is a re-survey of households from a four-round panel survey conducted in 1984-85. The 2003 data re-surveys 305 of the core 448 households in 1984/85, as well as 257 new households formed by children from the original households now living in separate households. Five categories of shocks, weather or environmental shocks; war or crime shocks; political, social or legal shocks; economic shocks; and health or household welfare shocks were examined. Through estimations done using Tobit regressions, we find that males and females respond differently to different types of adverse shocks. For both original and split households, we find evidence for labor demand constraints in both agricultural and non-agricultural off-farm jobs in response to environmental shocks, although males seem to be able to overcome such labor constraints. Also, we find that only males are able to work more off-farm jobs in response to shocks in original households, while both males and females are able to increase off-farm work in response to adverse shocks in split households. Higher education for females were highly significant in explaining days worked in non-agricultural jobs for both original and split households. Appropriate policy responses include counter-cyclical workfare programs targeted to households with high female-to-male ratios, households with high dependency ratios, and households with little or no education, as well as the provision of universal education and health care. These programs are likely to be effective in strengthening the labor endowments of households and improving their ability to cope with adverse shocks in the future.en_GB
dc.date.available2011-10-27T11:36:03Z-
dc.date.issued2011-10-27en_GB
dc.date.accessioned2011-10-27T11:36:03Z-
dc.conference.date2006-
dc.conference.hostMcMaster Universityen_US
dc.conference.locationDhaka, Bangladeshen_US
dc.description2006 International Conference: Dhaka, Bangladesh. The International Conference on the Impact of Global Issues on Women and Children, co-organized by McMaster University and the State University of Bangladesh, is an opportunity for the interdisciplinary exchange of development expertise and will be held in Dhaka, Bangladesh from February 12-16, 2006.en_US
dc.description.noteThis is an abstract-only submission. If the author has submitted a full-text item based on this abstract, you may find it by browsing the Virginia Henderson Global Nursing e-Repository by author. If author contact information is available in this abstract, please feel free to contact him or her with your queries regarding this submission. Alternatively, please contact the conference host, journal, or publisher (according to the circumstance) for further details regarding this item. If a citation is listed in this record, the item has been published and is available via open-access avenues or a journal/database subscription. Contact your library for assistance in obtaining the as-published article.-
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