Chronic and transient poverty in Mexico

What is it about?

Even though poverty in Mexico typically is around 50% of households, the number of households suffering poverty at least once in the periods considered in the analysis (2002-2005) is much higher. According to this study, 72 percent of households in Mexico have suffered or suffer from income poverty. Of these poor households, 36 percent of households are chronically poor and 64 percent were transiently poor. The results show that variables directly related to chronic poverty are: belonging to an ethnic minority group, living in a rural area, having a large family size, having a high percentage of older adults and children in the household and having a female household head. Having more education, having more assets, the age of the household head and having access to potable water and electricity in the household are variables positively related to the probability of escaping poverty.

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Why is it important?

To the authors knowledge, this is the first study on the dynamics of poverty using the spells approach for Mexico as a whole, not just for urban areas. The value of this work is that it estimates chronic and transitory poverty in Mexico as well as their possible determinants. The study findings can be used by the government to design and implement public policies to alleviate both chronic and transient poverty in Mexico.

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