Date Published:
Dec 20, 2018
Category:
Policy Notes
Focus Area(s):
Code:
PN 2018-18

The middle class is crucial in society. With better educational attainment and savings, they hold critical roles in higher value-added sectors. They are also willing to pay for better-quality products and services, and their demands encourage investments in production and marketing, raising general income levels. This Policy Note profiles the Filipino middle class and examines how long it takes for the poor and low-income class to transition to middle-income class. Among others, it finds that less than half of Filipino households belong to middle class, who are generally urban dwellers. Although the middle-income class are employed in stable jobs outside agriculture, with household members working abroad, nonetheless, these do not make the middle class strongly resilient to risk as they also face issues in housing and low access to social services. The study likewise finds that, on average, it may take 18 years or even longer, in case of the poor, to transition to middle income. The study urges the government to reexamine its social protection policies and recognize that while the poor is most vulnerable to future poverty, even the middle class is vulnerable. It likewise calls for the improvement of access to affordable housing in the Philippines and sustainable management of safe water.

Citations

This publication has been cited 21 times

In the Media
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  2. Abante News. 2023. Pantawid Pasada sa middle class hinirit. Abante News.
  3. ABS-CBN News. 2022. BPI unveils home loan package for middle class, unserved Filipinos. ABS-CBN.
  4. Adobo Magazine. 2020. Insight: The 2020 State of Online Taxation – 72.1% of online taxpayers show decreased income after COVID-19 community quarantine. Adobo Magazine.
  5. adobo magazine . 2021. Insight: Taxumo unveils report on the state of online taxation; reveals signs of recovery for some MSMEs as incomes increase. Adobo Magazine.
  6. Blancaflor, MJ. 2020. Duterte to seek vaccine fund loan. Tribune.
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  12. Mangahas, Mahar. 2023. Faster income surveying (Opinion piece by Mahar Mangahas). Inquirer.
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  14. Newsbytes. 2020. 72.1% of PH online taxpayers reported lower income during lockdown. Newsbytes.
  15. Reyes, Mary Ann. 2023. Cry for help. Philippine Star.
  16. Santiago F. Dumlao Jr. . 2022. Our Socioeconomic Disparities. BusinessMirror.
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  18. Team Orange. 2022. BPI launches flexible home loan package, BPI MyBahay. Orange Magazine.
  19. Valencia, Czeriza. 2019. Pinoy middle class still vulnerable to poverty. Philippine Star.
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  21. Yuvallos, Andrei. 2022. OPINION: Dear gov’t, stop leaving the middle class out. Noli Soli.


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