Applied Economics

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APPLIED

ECONOMICS
• DUKHA
• Ako ay isang anak mahirap
• Lagi na lang akong nagsusumikap
• Ang buhay ko’y walang sigla
• Puro na lang dusa
• Paano na ngayon ang buhay ko.

• Sa akin ay walang tumatanggap


• Mababa raw ang aking pinag-aralan
• Grade 1 lang ang inabot ko No read no write pa ako
• Paano na ngayon ang buhay ko.

• KORO:
• Isang kahig, isang tuka
• Ganyan kaming mga dukha
• Isang kahig, isang tuka
• Ganyan kaming mga dukha.
What do you think are the problems
being stated in the song? Identify and
write it down in the space provided
below.
Food and Poverty Thresholds

Food threshold is the minimum income required to meet the basic food needs,
satisfying the nutritional requirements set by the Food and Nutrition Research

Institute (FNRI) to ensure that one remains economically and socially


productive. On the other hand, poverty threshold is the minimum income
required to meet the basic
food and non-food needs such as clothing, fuel, light and water, housing, rental of

occupied dwelling units, transportation and communication, health and


education expenses, non-durable furnishing, household operations and personal
care and
effects
.
Poverty among Filipino families and individuals

Income gap - measures the average income required by the poor in order to get
out of poverty, expressed relative to the poverty threshold.
Poverty gap refers to the income shortfall (expressed in proportion to the poverty
threshold) of families with income below the poverty threshold, divided by the
total number of families.
Severity of poverty is the total of the squared income shortfall (expressed in
proportion to the poverty threshold) of families with income below the poverty
threshold, divided by the total number of families.
Farmers, Fishermen and Children consistently posted the highest poverty
incidence among basic sectors - PSA

5 of the 9 basic sectors have higher poverty incidence than the general
population
Among the nine basic sectors, farmers, fishermen and children belonging to families
with income below the official poverty threshold or poor families posted the highest
poverty incidences in 2015 at 34.3%, 34.0% and 31.4%, respectively. These sectors
consistently registered as the three sectors with the highest poverty incidence in
2006, 2009 and 2012. Also, 5 of the 9 basic sectors consisting of farmers, fishermen,
children, self-employed and unpaid family workers, and women, belonging to poor
families, had higher poverty incidence than the general population estimated at
21.6% in 2015.
Filipino Families Are Most Deprived in Education

The Philippine Statistics Authority (PSA) releases today the multidimensional


poverty statistics based on an initial methodology . It is called the
multidimensional poverty

index (MPI) and serves to complement the income-based measure of poverty. The
MPI is a measure that intends to capture deprivations on various dimensions.
Thus, the MPI provides information on which dimension the Filipinos are most
deprived in.

In the initial methodology, there are 13 indicators identified across the following
four
dimensions:
13 INDICATORS IDENTIFIED ACROSS THE FOLLWING FOUR
DIMENSIONS
I. EDUCATION DIMENSION

I. Education dimension III. Housing, Water and


• school attendance • educational Sanitation dimension
attainment • ownership of assets
• toilet facility
• source of water supply
• tenure status of dwelling
• housing materials
• electricity

II. Health and


IV. Employment dimension
Nutrition dimension
• underemployment
• hunger • working children not in school
• food consumption
• health insurance
Incidence of Deprivation among Families per Indicator

Indicator Dimension
Health insurance at 32.1 percent Health and
nutrition

Housing,
water and
Ownership of assets at 34.3 percent sanitation

Underemployment at 6.6 percent Employment

It must be noted, though, that there was an increase in incidence of deprivation from
2016 to 2017 in the following indicators and dimensions:
Indicator Dimension
Housing,
water and
Tenure status of dwelling sanitation

Hunger Health and


nutrition
• More than 60 percent of the population 15
years old and over are in the labor force

Of the estimated 73.5 million population 15


years old and over in October 2019,
approximately 45.2 million persons were in
the labor force, that is, either employed or
unemployed (Table 1 and Table 3). This
translates to a labor force participation rate
(LFPR) of 61.5 percent. Region X (Northern
Mindanao) had the highest reported LFPR
with 66.8 percent while the lowest LFPR
reported was in Bangsamoro Autonomous
Region in Muslim Mindanao (BARMM) at
53.4 percent (Table 1 and Figure 1).
• Employment rate registers at 95.5 percent
• The total number of employed persons in
October 2019 was estimated at 43.1 million
(Table 2). The reported employment rate or the
proportion of employed persons to total labor
force was 95.5 percent(Table 1).
• Region IX (Zamboanga Peninsula) had the
highest employment rate with 98.1 percent.
Seven of the 17 regions registered employment
rates lower than the national figure of 95.5
percent. These regions are the following:
Bangsamoro Autonomous Region in Muslim
Mindanao (BARMM) (93.4%),Region IV-A
• (CALABARZON) (94.2%),Region I (Ilocos
Region) (94.8%),Region V (Bicol Region)
(95.2%),Region III (Central Luzon)
(95.3%),National Capital Region (NCR) and
Region XIII (CARAGA) (95.4%). (Table 1 and
Figure 2).
More males are employed than females
• More than sixty percent (61.3%) of the
estimated 43.1 million employed persons in
October 2019 were males. The largest number
of the employed persons was in age group 25 to
34 years with 27.7 percent of the total
employed. The 35 to 44 age group comprised
the second largest group (23.0%), while the 45
to 54 age group made up the third largest group
(18.7%). Employed females were reported at
38.7 percent of total employed persons (Table 3
and Figure 3).
• More than half of employed persons are in the
services sector
• Employed persons in the services sector remained
the highest group estimated at 57.7 percent of the
total employed in October 2019. In October 2018, it
was estimated at 56.8 percent.
• The share of the industry sector to total employment
posted a decrease of 0.2 percentage points, from a
contribution of 19.1 percent in October 2018 to 18.9
percent in October 2019. In the agriculture sector, a
combined share of agriculture, forestry, hunting and
fishing sub-sectors showed a 0.6 decrease, from 24.1
percentin October 2018 to 23.5 percent in October
2019. (Table 4 and Figure 4).
• Among workers in the services sector, those engaged
in wholesale and retail trade; repair of motor
vehicles and motorcycles made up the largest
percentage with 19.8 percent of the total employed
(Table 4).
• More than one-fourth of employed persons are in
elementary occupations
• Across occupation groups, workers in elementary
occupations made up the largest percentage of 26.0
percent of the 43.1 million total employed
population. Service and sales workers were the
second largest group of workers with 18.6 percent.
Skilled agricultural, forestry and fishery workers
were the third largest group accounted at 12.0
percent (Table 5 and Figure 5).

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