Effect of the human development bonus on health and education expenditure in Ecuador using propensity score matching
DOI:
https://doi.org/10.25097/rep.n30.2019.02Keywords:
Bono de Desarrollo Humano, PSM, Salud, Educación, EcuadorAbstract
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.
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