Factors Affecting the Magnitude of Poor Families Across the Philippines: A Cross Section Data Analysis

This study is conducted to determine the factors affecting magnitude of poor families in the Philippines and measure the effect of the variables presented. The model was estimated using the Ordinary Least Square (OLS) procedure and cross sectional data set consisting of the 16 regions in the Philippines in the year 2000. The four variables that are found to have significant coefficients are gross regional domestic product (GRDP), functional literacy rate of the population 10-64 years old, number of persons with disabilities, and percentage of household with at least one land owned. Specifically, a peso increase in GRDP decreases the magnitude of poor families by 1 family. When the functional literacy rate increases by one percent decreases the number of poor families by 10,426 families. A unit increase in the number of persons with disability increases the number of poor families by around 4 families. While a percentage increase in the number of family with access to land by at least one land decreases the magnitude of poor families by 5,633 families. Result of the estimation shows that 81% of the variability of the magnitude of poor families in the Philippines can be explained by the predictors of the Model.