The Changing Determinants of Schooling Investments: Evidence from Villages in the Philippines, 1985-89 and 2002-04

This paper aims to explore the changing determinants of child progress through school over the last two decades using unique long-term household-panel data from four villages in the Philippines. In a regime of low income in the late 1980s, income from farming is the most important source of funds to finance child schooling. As households shift away from farm to non-farm activities and their children pursue higher education, non-farm income and revenues from pawning of land have emerged as main sources of schooling funds in the early 2000s. In this process, farm income has lost its prime importance as a determinant of schooling investments among rural households.