Analysis of the Income of the Inhabitants in the Urban Area of El Salvador 2018-2021

Abstract

This study explores the impact of education and other factors on the income of urban dwellers in El Salvador, using data from the Multipurpose Household Survey (2018-2021). The research highlights the importance of education in increasing household income and its relationship with human development. The objective of the study is to quantify the effects of education, sex, profession, and other factors on income in urban El Salvador, with the intention of guiding public policies and individual efforts to improve the quality of life. The methodology is based on two multiple linear regression models, applying the log-level method. Variables such as education, days worked, age, sex, profession and geographic region are analyzed. The data are adjusted for inflation and segmented to analyze the income of people employed in the urban sector, excluding remittances. The main results show that education has a positive effect on income, increasing by 6.89% with each additional year of study. However, women earn on average 22% less than men, although the effect of education in women is positive. Geographic location and days worked also have a significant influence. In conclusion, the study provides evidence that education and gender equality are key factors in improving earnings. It is recommended to focus efforts on education and gender equity policies to increase income and improve human development in El Salvador.