Determinants of health spending in El Salvador

Abstract

The main objective of this econometric study was to determine the socioeconomic factors that affect health spending in Salvadoran households through annual cuts for the years 2010, 2015 and 2020. The results obtained indicate that a percentage increase in total household spending generates 1.19% in health expenditure. It was also estimated that for every percentage increase in the number of rural households, there is an increase in health expenditures of 27.1%. Age, household composition, and the presence of children aged 0-5 years indicate increases of 38.4%, 0.62%, and 68.5% in health spending, respectively. Households with no schooling and no health insurance experienced a 7.6% and 25.7% increase in health spending, respectively. The variables remittances, poverty, and people over 65 years of age experienced an increase of 47.2%, 17.7%, and 20.3%, respectively. The results obtained can serve as a baseline, thus measuring the performance of public policies that reduce private health spending by Salvadoran households.