How Income Segmentation Affects Income Mobility: Evidence from Panel Data in the Philippines

Martinez, Arturo, Western, Mark, Haynes, Michele and Tomaszewski, Wojtek (2015) How Income Segmentation Affects Income Mobility: Evidence from Panel Data in the Philippines. Asia and the Pacific Policy Studies, 2 3: 590-608. doi:10.1002/app5.96

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Author Martinez, Arturo
Western, Mark
Haynes, Michele
Tomaszewski, Wojtek
Title How Income Segmentation Affects Income Mobility: Evidence from Panel Data in the Philippines
Journal name Asia and the Pacific Policy Studies   Check publisher's open access policy
ISSN 2050-2680
Publication date 2015-09-11
Year available 2015
Sub-type Article (original research)
DOI 10.1002/app5.96
Open Access Status File (Publisher version)
Volume 2
Issue 3
Start page 590
End page 608
Total pages 19
Place of publication Richmond, VIC Australia
Publisher Wiley-Blackwell Publishing Asia
Collection year 2016
Language eng
Formatted abstract
Despite vibrant economic growth, the Philippines confronts persistently high income inequality. Using household-level panel data collected for the years 2003, 2006 and 2009, we investigate how income segmentation affects Filipinos' income mobility prospects. The results of the multinomial logistic models suggest that if households are grouped according to initial income (in 2003), richer households had the lowest propensity to experience slow to moderate income changes and were most likely to experience consistently downward mobility from 2003 to 2009, while initially poorer households had the highest propensity to experience consistently upward mobility. On the other hand, if households are grouped according to permanent income, we still find that lower income households experienced (slightly) better income mobility outcomes; however, their edge over higher income households was much smaller than when initial income was used. This result could indicate that convergence on the basis of initial income may be in part random variation. The findings are robust to heuristic and model-based methods of grouping households into different income segments.
Keyword Income inequality
Income mobility
Economic growth
Pro poor growth
The Philippines
Q-Index Code C1
Q-Index Status Confirmed Code
Institutional Status UQ

Document type: Journal Article
Sub-type: Article (original research)
Collections: Institute for Social Science Research - Publications
Official 2016 Collection
School of Social Science Publications
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Created: Fri, 11 Sep 2015, 09:11:57 EST by Arturo Martinez on behalf of School of Social Science