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Measuring Vulnerability

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Philippine Institute for Development Studies
Surian sa mga Pag-aaral Pangkaunlaran ng Pilipinas

Toward Measuring Household Vulnerability to Income Poverty in the Philippines
Jose Ramon G. Albert, Lilia V Elloso . and Andrei Philippe Ramos

DISCUSSION PAPER SERIES NO. 2007-16

The PIDS Discussion Paper Series constitutes studies that are preliminary and subject to further revisions. They are being circulated in a limited number of copies only for purposes of soliciting comments and suggestions for further refinements. The studies under the Series are unedited and unreviewed. The views and opinions expressed are those of the author(s) and do not necessarily reflect those of the Institute. Not for quotation without permission from the author(s) and the Institute.

December 2007
For comments, suggestions or further inquiries please contact:
The Research Information Staff, Philippine Institute for Development Studies 5th Floor, NEDA sa Makati Building, 106 Amorsolo Street, Legaspi Village, Makati City, Philippines Tel Nos: (63-2) 8942584 and 8935705; Fax No: (63-2) 8939589; E-mail: publications@pids.gov.ph Or visit our website at http://www.pids.gov.ph

Toward Measuring Household Vulnerability to Income Poverty in the Philippines♦
Jose Ramon G. Albert,µ Lilia V. Elloso* and Andrei Philippe Ramos∂ Abstract: Concomitant to the analysis of poverty is the measurement of vulnerability. Estimates of household vulnerability to income poverty are developed using a modified probit model that considers volatilities in income as being explained by some household characteristics. Resulting vulnerability estimates are found to be higher than poverty rates, suggesting that policy interventions will have to be developed to minimize the risk households face in becoming income poor, or at least help them in mitigating the impact of their becoming poor.
Keywords: poverty,

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