EDUCATION, POVERTY AND DEVELOPMENT
IN THE PHILIPPINES:
FROM QUANTITY TO QUALITY AND BEYOND
Background paper for the Philippines Poverty Assessment 2004
Jose Garcia Montalvo
Abbreviations and Acronyms
Asian Development Bank
Annual Poverty Incidence Survey
Commission of Higher Education, Gov. of Philippines.
Department of Education, Gov. of Philippines.
Labor Force Survey
Presidential Commission on Education Reform.
Higher Education and Labor Market Study.
Higher Education Institution.
Family Income and Expenditure Survey
Technical Education and Skills Development Authority
National Economic and Development Authority
Philippines Institute for Development Studies
Technical and Vocational Education and Training
Philippines Education Sector Study
Previous Philippines Poverty Assessment (2001)
CHED Supervised Institution
TABLE OF CONTENTS
2. Inputs, outputs and the quality of education
1. International comparisons: education and productivity
2. Basic indicators of education in Philippines: efficiency and effectiveness 1. Primary and secondary education
2. Higher education
3. Inputs, outputs and efficiency: the regional dimension 3. Education and labor market outcomes
4. Regional shocks and workers education
1. Persistence of geographical differences in unemployment rates by skill level. 2. How do workers with different skill levels adjust to shocks? 5. Equity in the access to education
1. Basic expenditure indicators
2. Educational attainment and enrolment
3. Equity in the access to higher education
1. Education expenditure and access
2. Reasons for not being enrolled in education
3. Benefit incidence analysis of public expenditure in education 6. The return to education in Philippines
1. Previous studies on the return to education in Philippines 2. The return to education in Philippines using the APIS 2002. 7. Conclusions
Technical note I.
Education is a basic factor in economic development. At the microeconomic level education has an important role in social mobility, equity, public health, better opportunities for employment (lower unemployment and higher wages), etc. In the case of the Philippines the previous Poverty Assessment (World Bank 2001) showed clearly that the educational attainment of the head of the household was “the single most important contributor to the observed variation in household welfare.”
However it is also well known that the workers of Philippines have one of the highest levels of education of Asia, specially when considering its level of development. Probably Philippines is the most typical case of what is called the “education puzzle”. Therefore the level of poverty of the Philippines is difficult to be explained by the level of education of their workers.
We could summarize the characteristics of the education system in Philippines as follows:
a. High quantity, in terms of average level of education of the population. b. Low quality of education and small contribution of the quality of education to the growth of TFP. c. High degree of mismatch and overqualification in the labor market. d. Lack of equity in the access to higher education.
The objective of this report is to analyze and propose recommendations for the situation of the educational system of Philippines, specially with respect to the sector of tertiary education, digging into the contribution of education to economic growth in the Philippines as well as the factors that can explain why education is not translated into development. Our methodological approach is to deal analytically with all the...
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