Template-type: ReDIF-Paper 1.0
Author-Name: Takahiro Akita
Author-Name-First: Takahiro 
Author-Name-Last: Akita
Author-Email: akita@iuj.ac.jp
Author-Workplace-Name: IUJ Research Institute, International University of Japan
Author-Name: Raquel Celeste
Author-Name-First: Raquel
Author-Name-Last: Celeste
Author-Email: raki@iuj.ac.jp
Author-Workplace-Name: Department of Social Welfare and Development
Author-Name: Sachiko Miyata
Author-Name-First: Sachiko
Author-Name-Last: Miyata
Author-Email: miyata@fc.ritsumei.ac.jp
Author-Workplace-Name: Ritsumeikan University
Title: Why Has Inequality in the Philippines Declined? A Two-stage Hierarchical Inequality Decomposition Analysis by Location and Education
Abstract: The Philippines has been successful in reducing inequality over the last two decades. This study conducts a two-stage hierarchical inequality decomposition analysis by location and education to explore the determinants of declining expenditure inequality using the Family Income and Expenditure Survey. In the period 1997-2006, falling inequality among urban households with tertiary education is the dominant determinant by explaining 74% of declining overall inequality. In the period 2006-2018, falling disparity between urban and rural areas is the main determinant by explaining 42% of declining overall inequality. Falling inequality among urban households with tertiary education contributed also, but its contribution is 25%. Though expenditure inequality has declined, its level is still very high. To further reduce expenditure inequality, it is imperative to reduce inequality among households with tertiary education. It is also important to reduce inequality between education groups, particularly between households with tertiary education and those with lower education.
Classification-JEL: I24, I25, O15, O18
Length: 34 pages
Creation-Date: 2023-05
Number: EMS_2023_07
File-URL: https://www.iuj.ac.jp/workingpapers/index.cfm?File=EMS_2023_07.pdf
File-Format: Application/pdf
File-Function: First version, 2023
File-Size: 458KB
Keywords: expenditure inequality, Philippines, hierarchical inequality decomposition, roles of education, urban and rural dimensions
Handle: RePEc:iuj:wpaper:EMS_2023_07