Research Reports - Transient, Chronic, and Intergenerational Poverty: Evidence from the Cebu Longitudinal Health and Nutrition Survey


 

 

This paper examines poverty dynamics in the Philippines by decomposing poverty into its transient and chronic components using the Cebu Longitudinal Health and Nutrition Survey.  Findings reveal that poverty experienced by most people is largely transient. The paper then identifies the following as significant correlates of transient poverty: location of residence, household dependency burden, mother’s age, and work in the farming sector.  Transient poverty is also linked with single-person headed households. Meanwhile, significant correlates of chronic poverty include work in the farming sector and number of years of mother’s education Households with heads who are regular wage earners and who are contractual workers experience more chronic poverty than households with heads who are self-employed. Once the paper accounts for intergenerational poverty, the estimated association between parent and child's income ranges from 0.165 to 0.197, suggesting that moderate income rigidity exists between two generations. 

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