Poverty and smoking: assessing the financial impact of tobacco purchases on households´ budgets in Argentina
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National Administration of Social Security, Argentina
Publication date: 2018-03-01
Tob. Induc. Dis. 2018;16(Suppl 1):A386
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ABSTRACT
Background:
Opportunity costs of resources spent on
tobacco are higher
for low income households. This study assesses the financial impact of tobacco
consumption on households' budgets in Argentina. First, it examines budget
allocation among tobacco and other goods and services using
a nationally representative household survey. Second, it explores the impact of
tobacco consumption on the probability of having out-of-pocket expenditures on
healthcare.
Methods:
We
perform statistical analysis on the latest Household Expenditure Survey carried out by the National Institute of Statistics of Argentina in 2012/2013. This probabilistic, stratified, multistage sample contains information on consumer expenditures and socioeconomic characteristics of
20.960 urban households. Descriptive analysis of budget allocation by income
quintile is performed first. Second, the impact of tobacco consumption on healthcare spending is assessed by a probit model. The dependent
variable takes the value of 1 if the household had out-of-pocket health expenditures, and zero otherwise. Regressors include standard socioeconomic determinants of healthcare
spending, such as presence of minor and senior members in the household, family income, medical insurance, sex, age, occupational status, and education.
Results:
Purchases
of tobacco products represent 2.9% of total spending in
households where at least one member consumes tobacco products. The proportion is higher in low-income households: it averages
3.3% in the bottom income quintile, and 2.2% in the top income quintile. Furthermore,
the probit model shows that, other factors being held equal, having a smoker in
the household increases the probability of out-of-pocket healthcare expenditures by 8.72% (95% CI: 4.87%-12.57%).
Conclusions:
Smoking
imposes significant financial constraints on households' budgets. These
constraints are more severe on low-income households, and may prevent them from
escaping poverty by reducing resources available for long-term
investments. This study provides evidence that an effective tobacco
control policy may reduce disparities among socioeconomic groups beyond its well-known
effects on health outcomes.