Analysis of the Influence of the Electric Energy Coverage Index on the Incidence of Monetary Poverty in Colombia through Path Analysis

Analizar la Influencia del Índice de Cobertura de Energía Eléctrica en la Incidencia de Pobreza Monetaria en Colombia mediante Path Analysis

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Angélica González
Leonardo Rivera C.
Diego F. Manotas-Duque

Resumen

This research aims to identify and analyze the potential connections between indicators that reflect living conditions in rural areas across various departments in Colombia. These indicators encompass various aspects such as education in households, well-being of children and youth, labor market characteristics, access to healthcare, availability of public services, and housing conditions. Each of these factors directly or indirectly affects the country’s monetary poverty assessment.
The primary goal of the study is to create a model that can examine in detail how electricity coverage in rural areas is linked to the incidence of monetary poverty. To achieve this, the study utilizes a structural equation model approach, along with the path analysis technique. This method not only measures the direct relationships between the different indicators but also identifies indirect effects and interactions between the variables being analyzed.
The findings of the analysis reveal that electricity coverage significantly impacts the incidence of monetary poverty. Furthermore, the study indicates that informal employment plays a crucial role in perpetuating monetary poverty in rural areas. Informal work, characterized by job instability, lack of social security, and uncertain income, contributes to the persistence of poverty conditions.
As a result, the study emphasizes the necessity of improving infrastructure and access to basic services in rural areas and underscores the importance of addressing labor informality as a critical factor in reducing poverty.

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