Effect of the human development bonus on health and education expenditure in Ecuador using propensity score matching

 

Authors
Guamán, Jéssica; Lara, Estefanía; Alvarado, Rafael; Ponce, Pablo
Format
Article
Status
publishedVersion
Description

The objective of this research is to evaluate the effect of the Human Development Bonus on health and education spending in Ecuador using Propensity Score Matching. We use microdata obtained from the 2013-2014 Living Conditions Survey published by the National Institute of Statistics and Census of Ecuador. We estimate two sets of models. In the first, we estimate OLS regressions, where the dependent variable is the amount spent on health and education and the independent variable is whether or not the person receives the Human Development Bonus. In the second, using discrete choice models, we estimate the effect of receiving the BDH on the probability that a person spends on education and health. In order to reduce the bias produced by the non-comparability of the data, we compare the results with PSM and without PSM between those who receive the transfer and those who do not. The results show that BDH beneficiaries spend less on health and education than those who do not. These results are consistent with the incorporation of a set of control variables related to the socioeconomic characteristics of the families. A possible policy implication based on our results is that the conditioned monetary transfer is not fulfilling the objectives of its creation. Consequently, social policies should guarantee that this type of programs are not an instrument of dependence that limits the capacities of people because this prevents the reduction of poverty and inequality.
El objetivo de esta investigación es evaluar el efecto del Bono de Desarrollo Humano en el gasto de salud y educación en Ecuador utilizando Propensity Score Matching. Usamos microdatos obtenidos de la Encuesta de Condiciones de Vida del 2013-2014 publicada por el Instituto Nacional de Estadística y Censos de Ecuador. Estimamos dos conjuntos de modelos. En el primero, estimamos regresiones OLS, donde, la variable dependiente es el monto gastado en salud y en educación y la variable independiente es si la persona recibe o no el Bono de Desarrollo Humano. En el segundo, mediante modelos de elección discreta, estimamos el efecto de recibir el BDH en la probabilidad de que una persona gaste en educación y salud. Con el fin de reducir el sesgo que produce la no comparabilidad de los datos, comparamos los resultados con PSM y sin PSM entre los que reciben la transferencia y quienes no lo reciben. Los resultados muestran que los beneficiarios del BDH gastan menos en salud y educación con respecto a quienes no reciben. Estos resultados son consistentes con la incorporación de un set de variables de control relacionadas con las características socioeconómicas de las familias. Una posible implicación de política a partir de nuestros resultados es que la transferencia monetaria condicionada no está cumpliendo los objetivos de su creación. En consecuencia, las políticas sociales deberían garantizar que este tipo de programas no sean un instrumento de dependencia que limiten las capacidades de las personas debido a que esto impide la reducción de la pobreza y la desigualdad.
The objective of this research is to evaluate the effect of the Human Development Bonus on health and education spending in Ecuador using Propensity Score Matching. We use microdata obtained from the 2013-2014 Living Conditions Survey published by the National Institute of Statistics and Census of Ecuador. We estimate two sets of models. In the first, we estimate OLS regressions, where the dependent variable is the amount spent on health and education and the independent variable is whether or not the person receives the Human Development Bonus. In the second, using discrete choice models, we estimate the effect of receiving the BDH on the probability that a person spends on education and health. In order to reduce the bias produced by the non-comparability of the data, we compare the results with PSM and without PSM between those who receive the transfer and those who do not. The results show that BDH beneficiaries spend less on health and education than those who do not. These results are consistent with the incorporation of a set of control variables related to the socioeconomic characteristics of the families. A possible policy implication based on our results is that the conditioned monetary transfer is not fulfilling the objectives of its creation. Consequently, social policies should guarantee that this type of programs are not an instrument of dependence that limits the capacities of people because this prevents the reduction of poverty and inequality.

Publication Year
2019
Language
spa
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REVISTAUC
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https://publicaciones.ucuenca.edu.ec/ojs/index.php/REP/article/view/2703
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Derechos de autor 2019 Revista Economía y Política