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EMPOWERING THE POOR: EXPLORING THE ROLE OF EMPLOYMENT

IN POVERTY REDUCTION STRATEGIES

A Research Paper

Submitted in Partial Fulfilment of the

Requirements in Ged 104 – The Contemporary World

Submitted by: GROUP V

BSMA- 1202

Researchers:

Asister, Angelo P.

Caguimbal, Aprilyn

Fernandez, Jet Rome H.

Lanto, Izzu

Macasaet, Sarah May S.

Palermo, Reynalyn

Puzo, Christine Joy

Rico, Kyla Marie

APRIL 2023
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CHAPTER I
THE PROBLEM AND ITS BACKGROUND

Introduction

Poverty is a global phenomenon that affects millions of people worldwide.

It exist when people lack the means to satisfy their basic needs. Despite the

efforts made by governments, non-governmental organizations, and

international institutions, poverty remains a persistent problem that requires

continuous attention. One of the reasons why there is Poverty is their lack of

work and income. A high rate of economic growth, associated with a high

degree of Employment intensity, is a necessary condition for the reduction in

poverty (OECD, 2009). For poverty to be reduced, productivity and earnings

real wages, as well as returns from self-employment must increase sufficiently

to boost the incomes of poor people.

This research study delves into the importance of employment in reducing

poverty. Empowering the poor is a crucial step towards reducing poverty and

achieving sustainable economic growth. One of the key ways to empower

people is through employment. Giving work to those in need or those who

suffer poverty the most is one strategy to prevent poverty. One of the various

jobs that can be offered to individuals is working in fast food, restaurants,

where there is a staff, dishwasher, server and etc.

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This concludes that poverty reduction strategies should focus not only on

the persons living in poverty but also on changing mindsets, perceptions, and

attitudes towards poverty. The research highlights the significance of inclusive

economic growth in enabling impoverished communities to utilize their

resources to increase both their output and incomes, thus breaking the poverty

trap and providing for their basic needs.

Statement of the Problem

The main purpose of this study is to explore the role of employment in poverty

reduction strategies. Specifically, it sought to answer

The following questions;

(1) What reducing measures can help in empowering the underprivileged?

(2) What is the most effective way to reduce poverty?

(3) How might employment help the fight against poverty?

(4) How can strategies be used to study and fight poverty?

Scope and Delimitation

This study focuses on figuring out how and what employment will be

useful for in order to achieve lasting poverty reduction and how those

strategies will efficiently empower the poor Filipino citizens.

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This study focuses on people here in the Philippines with low

socioeconomic status and that includes those who are unemployed and those

who have lost their jobs for some reason. It will discuss how they will be able

to maintain a standard of life as because of having a job or being employed

and does the strategies will be able to help to reduce poverty.

Significance of the Study

The study about "Empowering the Poor: Exploring the Role of

Employment in Poverty Reduction Strategies" is significant because it sheds

light on the crucial role of employment in reducing poverty. Here are some

reasons why this study is important:

• Addressing poverty: Poverty is a pervasive problem in many parts of

the world, and finding effective ways to reduce it is crucial. This study helps to

shed light on the role of employment in poverty reduction, which can inform

policies and interventions aimed at improving the lives of the poor.

• Poverty reduction: Employment is considered one of the most effective

ways to reduce poverty. When people have a job, they can earn a steady

income, which can help them meet their basic needs, such as food, shelter,

and clothing. The study can provide insights into the link between employment

and poverty reduction, which can inform policymakers and development

practitioners.
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• Identifying barriers to employment: Many poor individuals and

households face significant barriers to employment, such as lack of education,

skills, or access to job opportunities. By identifying these barriers and

exploring ways to overcome them, this study can inform the development of

effective strategies for empowering the poor through employment.

• Understanding the impact of employment: Employment has a

significant impact on the well-being of individuals and households. It provides

income, social status, and a sense of purpose, which can help to alleviate

poverty. By exploring the relationship between employment and poverty

reduction, this study can help policymakers and practitioners to better

understand the impact of employment on the poor.

•A call to action: The study serves as a call to action for governments,

nongovernmental organizations, and businesses to prioritize job creation and

employment as part of their poverty reduction strategies. It highlights the need

for collaboration and innovation to create sustainable, long-term solutions to

poverty.

In general, the study on empowering the poor and exploring the role of

employment in poverty reduction strategies is significant as it can provide

insights into the link between employment and poverty reduction and

contribute to the development of effective policies and strategies for inclusive

and sustainable development.

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CHAPTER II

REVIEW OF RELATED LITERATURE

Related Literature

The government says that there have always been many difficulties with

employment in the Philippines. The Philippine economy has grown over the

past ten years, and it has been able to accommodate the country's expanding

labor population by creating adequate jobs. Micro, Small, and Medium-Sized

Enterprises (MSMEs) are one of the main forces powering the Philippine

economy. By giving jobs to the expanding Philippine labor force, these

enterprises that are involved in the wholesale/retail trade, manufacturing,

hotels and restaurants, real estate, and other community and social service

businesses serve to eliminate poverty in the nation.

Poverty, inequality, and low-quality employment are significant

challenges, but one does not have to be an economist to recognize this. The

Note discovers that poverty is endemic in the Philippines' workplaces. On the

one hand, it results from low worker productivity, which reflects poor workforce

education and skill levels. On the other hand, a lack of opportunities for

lucrative employment is the cause. The lack of jobs demanding advanced

abilities may result in a vicious spiral where workers lack incentives to invest

in their education. The absence of necessary skills among workers prevents

the creation of skill-intensive jobs.

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The goal of shared prosperity is hampered by the segmentation of job

opportunities and significant productivity gaps between industries. Divides

between urban and rural areas and formal and informal settings are especially

prominent. Rural and unorganized employment make little money and are at

a significant risk of being hunger. The Philippines must tackle the twin issues

of low skills and low productivity jobs in order to eliminate poverty and advance

shared prosperity. In order to guarantee that increases in worker productivity

result in greater salaries, a mechanism must also be put in place. Without an

increase in real wages, especially at the bottom of the wage distribution,

poverty in the Philippines will not be decreased. These issues cannot be

solved.

FOREIGN

The role of employment in reducing poverty has not been emphasized

enough in national poverty reduction strategies, particularly in the Poverty

Reduction Strategy Papers now being prepared in many countries. This is

surprising given the obvious importance of employment. Much has been

written on the relationship between growth and employment, and in particular

on the need for employment-intensive growth. Less has been written,

however, on the relationship between employment and poverty reduction. The

challenge for national policy makers is not only to link growth to productive

employment, or "decent work" as the International Labour Office calls it, but
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also to ensure that the growth in employment is concentrated

among poorer workers. Many of the poor in Armenia work, but they work in

low-productivity, low-income sectors of the economy, such as small-scale

agriculture, rural non-farm trade and urban informal-sector services. Much of

this work is only part-time. Thus many of the poor are not unemployed, but are

"working poor". Officially they might be registered as unemployed but

unofficially they cannot afford to remain without a job. Those who are

registered as officially unemployed are usually workers, such as women who

normally work in the household economy or youths who lack experience, who

have the greatest difficulty in obtaining a paid job, even in the informal sector.

The International Labor Organization (ILO) defines productive

employment as work that provides "sufficient returns to labor to permit workers

and their dependents a level of consumption above the poverty line" and

includes three dimensions: compensation, job stability, and working

conditions. Additionally, it is the key component that connects economic

growth to development and poverty reduction, and that, when combined with

social protection, provides.

According to the International Labour Organization

(ILO 2015). There is a risk that promoting SMEs because of their large

contribution to employment, without further differentiating them by sub-

segments, may result in a trade-off between the quantity and quality of

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employment, because SMEs also include a large number of micro-enterprises

that create jobs that are neither productive nor decent.

The role of employment in reducing poverty has not been emphasized

enough in national poverty reduction strategies, particularly in the Poverty

Reduction Strategy Papers now being prepared in many countries. This is

surprising given the obvious importance of employment. Much has been

written on the relationship between growth and employment, and in particular

on the need for employment-intensive growth. Less has been written,

however, on the relationship between employment and poverty reduction. The

challenge for national policy makers is not only to link growth to productive

employment, or "decent work" as the International Labour Office calls it, but

also to ensure that the growth in employment is concentrated among poorer

workers. Many of the poor in Armenia work, but they work in low-productivity,

low-income sectors of the economy, such as small-scale agriculture, rural non-

farm trade and urban informal-sector services. Much of this work is only part-

time. Thus many of the poor are not unemployed, but are "working poor".

Officially they might be registered as unemployed but unofficially they cannot

afford to remain without a job. Those who are registered as officially

unemployed are usually workers, such as women who normally work in the

household economy or youths who lack experience, who have the greatest

difficulty in obtaining a paid job, even in the informal sector.

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Related Study

The main causes of poverty in the Philippines are the low earning

potential of the poor and their restricted access to stable, lucrative work.

Behind these are the two interconnected root causes of in-work poverty: low

levels of education among the poor and a lack of opportunities for lucrative

employment. There are "good" employment and "bad" ones on the labor

market, with the impoverished occupying the latter.

Hundreds of millions living in poverty are excluded from productive

employment opportunities that could give them the power to change their lives.

Many have the aptitude and motivation to succeed but struggle to gain access

to good jobs due to systemic barriers related to their economic or social

backgrounds.

The reduction of in-work poverty hinges on removing constraints to

gainful employment in both supply side (better education and skills) and

demand side (better jobs). It is critical that the young poor have improved

access to quality education, and be equipped with skills required in the modern

sector of the economy. But in parallel, better jobs need to be created, which

can be attained from the growth of the formal and higher value added sector

of the economy.
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FOREIGN

One of the primary EU strategic development goals for its member and

candidate countries is the production of more and better jobs. The "Europe

2020" Strategy intends to transform the European Union into an economy that

is intelligent, sustainable, and inclusive, with high levels of employment,

productivity, and social cohesion. No type of economic growth is encouraged,

only inclusive growth, which calls for increasing Europe's employment rate,

creating more and better jobs, particularly for women, young people, older

workers, and low-skilled individuals, as well as legal immigrants; assisting

people of all ages to anticipate and manage change through investment in

skills & training; modernizing labor markets and welfare systems; and ensuring

that the benefits of growth reach all regions of the European Union.

For employers who are living in poverty, employment is a crucial tool

for escaping poverty. China has built a mechanism for reducing poverty

through employment, and it has consistently updated associated regulations

and implemented a wide range of targeted support measures to aid in the

employment of laborers who are struggling with poverty. Programs for poverty

reduction, labor service collaboration, public-benefit service jobs, skills training

services, and other initiatives have all contributed positively to reducing

poverty through the promotion and support of employment from the start of the

fight against it. China has accomplished a great deal in this area, and its
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expertise in providing targeted aid, creating jobs, coordinating regional efforts,

supporting policies, and other areas is very motivating for future efforts to

reduce poverty both within the nation and abroad.

The reduction of poverty can be accomplished by implementing sensible

policies that deal with the underlying causes of poverty, support inclusive

economic growth, give priority to the fundamental needs of the poor, and offer

them access to economic possibilities that will empower them and raise their

standard of life. Following, we include a few case studies from sub-Saharan

Africa, Asia, and Latin America to provide instances of actual programs that

have significantly reduced poverty in these regions. These case studies offer

significant insights for policymakers who are attempting to fight poverty in

various circumstances.

The study first provides the macro perspective in which current growth,

urban unemployment, and urban poverty have occurred before addressing the

concerns of decent work, employment, and poverty in urban China. On the

basis of the most recent official data available, the study then estimates urban

poverty. With respect to decent work, this estimation and characterization of

urban poverty points to three major causal factors that each contribute to

urban poverty: urban unemployment, the ongoing integration of the rural and

urban labor markets, which has resulted in significant migration, and the

emergence of a sizable and expanding informal economy in cities.

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As of May 2021, more than 9 million Americans were unemployed, 19

million adults and up to 8 million children had experienced food insecurity, and

more than 10 million renters were behind on rental payments. Communities of

color and other underserved families have been hit particularly hard by the

pandemic and subsequent economic downturn: Black, Indigenous, and Latinx

communities have seen higher rates of infection, hospitalization, and death as

well as unemployment. Likewise, the disability community has been

disproportionately affected by high rates of mortality at congregate facilities,

inequitable vaccine rollouts, and delayed stimulus payouts to individuals on

Social Security and Supplemental Security Income.

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Conceptual Framework

INPUT PROCESS OUTPUT

• A report on the
potential for employment
in the fast food industry
to serve as a poverty
reduction strategy, with
recommendations for
• Statistics on
improving job quality and
employment rates, wages,
working conditions
and benefits for workers in •Data collection of fast-food
the fast food industry workers profiles through • A set of policy proposals
interview to incentivize fast food
chains to provide better
•Administering questionnaires
• Qualitative data on the wages and benefits to
experiences of low-income •Organization of fast-food workers, such as tax
individuals working in the workers responses incentives or public
fast food industry, relations campaigns
including challenges they •Statistical analysis of data
face and opportunities for • An advocacy campaign
advancement to raise public awareness
about the challenges
faced by low-income
individuals in the fast
food industry and to
promote policies that
improve working
conditions and job
security.

FIGURE 1
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The Research Paradigm

Figure 1 include the input, process and output. Input includes the Statistics on

employment rates, wages, and benefits for workers in the fast food industry

and Qualitative data on the experiences of low-income individuals working in

the fast food industry, including challenges they face and opportunities for

advancement . Process includes the Data collection of fastfood Workers

profiles, Administering questionaires, Organization of fastfood workers

responses, and Statistical analysis of data. And lastly, the output. It includes a

report on the potential for employment in the fast food industry to serve as a

poverty reduction strategy, with recommendations for improving job quality

and working conditions, A set of policy proposals to incentivize fast food chains

to provide better wages and benefits to workers, such as tax incentives or

public relations campaigns, and an advocacy campaign to raise public

awareness about the challenges faced by low-income individuals in the fast

food industry and to promote policies that improve working conditions and job

security.

Hypothesis

Poverty reduction strategies can affect the role of employment when it

comes to empowering the poor. Poverty reduction is the result of employment.

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null - The role of employment has no significant effect in poverty reduction

strategies

alternative - The role of employment has a significant effect in poverty

reduction strategies
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CHAPTER III

RESEARCH METHODOLOGY

Research Design

The researchers use qualitative approach to fulfil the main objective of

the study which is to empower the poor.

Phenomenology is a qualitative research method that aims to understand

people's experiences of a particular phenomenon. In this case, the focus would

be on understanding the experiences of individuals who have been impacted

by poverty reduction strategies that have incorporated employment as a key

component.

The phenomenological approach involves conducting in-depth

interviews or focus groups with participants who have firsthand experience of

the phenomenon being studied. These interviews would be design to explore

the participants' perceptions and experiences related to employment as a

poverty reduction strategy. The goal is to gain an in-depth understanding of

the participants' lived experiences, which can be use to develop a deeper

understanding of the role of employment in poverty reduction strategies.

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English medium could be utilize while conducting interview in the target

respondents to be align in the structure of the research study.

Subject of the Study

Among the job satisfaction factors, responsibility had a stronger

relationship with employee turnover intentions compared with other factors.

Under job dissatisfaction factors, company policy had a stronger relationship

with employee turnover intentions compared with other factors. The study

findings are designed to inform fast food restaurant managers in taking actions

to reduce employee turnover, resulting in improved business financial

sustainability and long-term growth.

The subject of the study "Empowering the Poor: Exploring the Role of

Employment in Poverty Reduction Strategies" would focus on the role of

employment in reducing poverty, particularly among workers in the fast-food

chain industry in the Philippines. The study would examine the working

conditions, wages, and benefits of workers in the fast-food chain industry and

how these factors contribute to poverty reduction. Additionally, the study would

aslo investigate the extent to which access to education and training

opportunities provided by the Government can contribute to poverty reduction

and employment opportunities for workers in this industry.

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We would employ Qualitative Research Method, including interviews to

gather data on the experiences and perspectives of workers in the fast-food

chain industry here in the Philippines. This study would also draw on existing

literature and data on poverty, employment, and social protection in the

Philippines to provide context for the analysis. Overall, this study would

contribute to a better understanding of the role of employment in poverty

reduction strategies, particularly in the context of the fast-food chain industry

in the Philippines, and would provide insights into ways to improve the working

conditions and livelihood opportunities for workers in this industry to reduce

poverty and promote social inclusion here in our county, The Philippines.

Research Instruments

The researcher used a structured interview, The researcher asked a

specific closed-ended question. The researcher used standardized questions

to get some kinds of information, such as the demographic profiles of the

interviewee. Interviewees were questioned on a variety of topics related to

poverty, including their thoughts on poverty, their opinions on the government's

efforts to reduce poverty, and their perspectives on unemployment. The

researcher conducted at least 4,000 interviews, 2,000 of which were with self-

employed individuals and the remaining 2,000 with individuals who were

unemployed. The researcher structured interviews so that each informant had

10 minutes of online conversation with them in their homes and 10 minutes of

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conversation with them outside of their homes (in workplaces, streets, etc.).

The researcher allows people to carry on with their work and not distract them

for longer. And to obtain information about the role of employment in efforts for

reducing poverty, a set of closed-ended interview questions was created. To

make the interview process easier for responders who prefer the local

language for the interviews, the interviews will be performed in the local dialect.

The dialogue is recorded using a standardized process that will be used on

later pages of this study, and each researcher will employ note-taking to

encode it for purposes of decoding.

Data Gathering Procedures

The researcher will request permission to write a letter in order to conduct

the study with the chosen respondents. The researcher will thoroughly and

clearly explain the purpose of the research to the respondents, as well as

provide some term clarifications so that they can respond to the questionnaire

in a knowledgeable manner. Respondents will be given the assurance that

their responses will be kept private. The interviewee was instructed to provide

honest responses to all of the inquiries made by the researcher. All of the

information was gathered during the interview process and will be included for

data interpretation.
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References

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International Labour Organization. (n.d.). Retrieved from: https://www.ilo.org/

Center for American Progress (2023). Retrieved from:

https://www.americanprogress.org/

Warwick, M. et. al (2016). Employment and Poverty in the Philippines.

Retrieved from: https://www.worldbank.org/en/news/speech/

2016/06/17/employment-and-poverty-in-the-philippines
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McKinley, T., & Griffin, K. (2023). Employment-Intensive Growth and Poverty

Reduction. Retrieved from:

https://www.researchgate.net/publication/242244513_Employment-

Intensive_Growth_and_Poverty_Reduction

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