Estimating Gini Coefficient and FGT Indices in the Philippines Using the Family Income and Expenditure Survey

ABSTRACT

Rooted from unequal and inequitable income distribution, poverty is the struggle of households in lower income distribution to access basic necessities. Using the Philippine Family Income and Expenditure Survey micro data from 2000-2015, we draw Lorenz curves for each year and estimated national and regional Gini coefficients. Our data also allowed us to obtain the Foster–Greer–Thorbecke poverty and inequality indices. Thus, we captured changes in poverty and income distribution. Results revealed a diminutive welfare improvement calling for a distinct framework in implementing poverty alleviation programs.

KEYWORDS:

• FGT indices
• Gini coefficient
• income distribution
• income inequality
• poverty