Social and microeconomic factors of monetary poverty in salvadoran households

Abstract

This research presents two binomial probability models that aim to establish the relationship between the factors that determine the likelihood that a Salvadoran household is monetarily poor. To achieve this, once the models are specified, a marginal effects analysis is conducted, explaining the effects of the probit model, as it is the model that best fits the available statistical data. The study shows that the three factors with the greatest influence on the probability that a Salvadoran household is not poor are as follows: (a) if the head of the household has some type of university degree, the probability of poverty decreases by 15.55%; (b) if the household has internet service, the probability decreases by 9.24%; finally, (c) the probability of a household being poor increases by 14.59% if the head of the household is self-employed.