Poverty Measurement in the Philippines 1

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1 Poverty Measurement in the Philippines 1 Lisa Grace S. Bersales Na;onal Sta;s;cian Philippine Sta;s;cs Authority 1 presented at the Side Event on Mul;dimensional Poverty Measurement, 46 th Session of the UN Sta;s;cal Commission

2 Official Poverty Sta;s;cs in the Philippines Highly an;cipated by many stakeholders Income- based Compared with self- rated poverty sta;s;cs by a private group Need to capture other dimensions Technical CommiOee on Poverty Sta;s;cs provides guidance

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7 Poverty Incidence for Families Philippines poverty incidence(%) Official poverty incidence self- rated poverty incidence Year

8 Study by Planning Minister Multidimensionality of poverty: No longer debatable Multiple deprivations of different kinds experienced simultaneously by the poor beyond growth much needs to be done to make development more inclusive No one-for-one correspondence between income poverty & other deprivations Increasing demand from policy makers New methodologies exist Alkire-Foster methodology>> dashboard of dimensions of poverty

9 Methodology Deprivation cut-off Attainment dimensions Poverty cut-off Attainment indicators Dimension weights Aggregate attainment Multidimensional Poverty Index (MPI) Source: Balisacan(2014) What has really happened to poverty in the Philippines? and Edillon(2014), Mul;dimensional Poverty Deprivation matrix Headcount (H) Intensity (A)

10 Nationally representative surveys DATASET YEARS AVAILABLE National Demographic and Health Survey (NDHS) Family Income and Expenditure Survey (FIES) Annual Poverty Indicator Survey (APIS) 1993, 1998, 2003, , 1991, 1994, 1997, 2000, 2003, 2006, 2009, , 2002, 2004, 2007, 2008, 2010, 2011, 2013* *Unit record data not yet available at the 2me of study Source: Balisacan(2014) What has really happened to poverty in the Philippines? and Edillon(2014), Mul;dimensional Poverty

11 Weights Health Education Standard of Living Weight 1/3 1/3 1/3 Components (equal weights, nested) NDHS 2 (2) 2 4 FIES 2 (3) 2 5 (7) APIS 2 (3) 2 4 (7) Source: Balisacan(2014) What has really happened to poverty in the Philippines? and Edillon(2014), Mul;dimensional Poverty

12 Achievement (Deprivation) Dimensions HEALTH NDHS FIES APIS Child Mortality Water Sanitation Nutrition Food poverty a EDUCATION Years of Schooling Child School Attendance Potential Schooling STANDARD OF LIVING Electricity Shelter Flooring Roof Wall Mobility Access to motor vehicles Access to national roads Asset ownership Household Assets Transport House tenure Other sources of income Source: Balisacan(2014) What has really happened to poverty in the Philippines? and Edillon(2014), Mul;dimensional Poverty

13 Multidimensional Headcount (H m ) vs. Income Headcount (H y ) Headcount ratio Hm (FIES)** Hm (APIS) Hm (NDHS) Hy* *Uses official per capita food poverty threshold for 2009 (among families). **Note: Line indicates that before 2000 the FIES- generated MPI uses a different defini2on of assets. Source: Balisacan(2014) What has really happened to poverty in the Philippines? and Edillon(2014), Mul;dimensional Poverty

14 Percentage of population who are MPI poor and deprived in each indicator Percent contribution to MPI, 2012 Health Water Sanitation Food poor 14.9% 8.1% 13.7% Education Standard of living Years of schooling Child school attendance Electricity Shelter (roof) Shelter (walls) Mobility Income from other sources Ownership of assets 5.6% 16.0% 5.2% 2.6% 3.9% 2.8% 13.7% 13.5% FIES 2012 FIES % 5% 10% 15% 20% 25% 30% 35% 40% 45% Percent of population Source: Balisacan(2014) What has really happened to poverty in the Philippines? and Edillon(2014), Mul;dimensional Poverty

15 Intensity & headcount of multidimensional poverty, by region, FIES Average intensity of MP (A) Mimaropa N. Minsanao Caraga Socckskargen Zamboanga Cagayan Valley C. Visayas Davao E. Visayas W. Visayas Bicol CAR Ilocos C. Luzon Calabarzon ARMM 0.30 NCR MP headcount ratio (%) Source: Balisacan(2014) What has really happened to poverty in the Philippines? and Edillon(2014), Mul;dimensional Poverty

16 Multidimensional headcount (H m ) vs. Income headcount (H y ), FIES Headcount (%) Hm - Health dimension Hm - Education dimension Hm - Standard of living dimension Hy - Income headcount Source: Balisacan(2014) What has really happened to poverty in the Philippines? and Edillon(2014), Mul;dimensional Poverty

17 Moving Forward Study to start in March 2015 on enhancing household surveys including development of an integrated household survey for a comprehensive framework for poverty measurement in the Philippines Need a communica;on plan for the comprehensive framework For review and endorsement of the technical commioee

18 Thank you!

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