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Poverty and EquityAssessmentMEXICO A reproducibility package is available for Section 1 and Annexesof this report in the Reproducible Research Repository athttps://reproducibility.worldbank.org/index.php/catalog/236 Copyright © 2024, International Bank for Reconstructionand Development / World Bank1818 H Street N.W.Washington D.C. 20433,United States of AmericaTelephone: (202) 473-1000Internet: www.worldbank.orgIn Spanish: www.bancomundial.orgEmail: feedback@worldbank.orgRights ReservedThis volume is a product of the staff of the International Bank forReconstruction and Development/The World Bank. The findings,interpretations, and conclusions expressed in this volume do notnecessarily reflect the views of the Executive Directors of the World Bankor the governments they represent. The World Bank does not guarantee theaccuracy of the data included in this publication.Rights and PermissionsThe International Bank for Reconstruction and Development/The World Bankencourages the dissemination of its work and will normally grant permissionto reproduce portions of this work promptly, provided the sources areacknowledged.Attribution—Please cite the work as follows:World Bank (2024), Mexico Poverty and Equity Assessment.Cover and Interior DesignKilka Diseño Gráfico SAS Table of ContentsExecutive SummarySection 1:Monetary Poverty and Inequality in MexicoMonetary poverty. . . . . . . . . . . . . . . . . . . . . . . . .17Chronic Poverty and Income Mobilityfrom labor incomes........................28Inequality of Incomes......................30Some international comparisons. . . . . . . . . . . . . . .33Section 2:Social deprivations in MexicoAdvances and reversals of multidimensionalpoverty in Mexico.........................39Public expenditures and its distribution explainsocial deprivations in Mexico. . . . . . . . . . . . . . . . .42Some international comparisons...............50Section 3:Vulnerability to poverty due to climateevents in MexicoMaps of exposure and vulnerability to extremeclimate events in Mexico. . . . . . . . . . . . . . . . . . . .54 10163853 Evolution of vulnerability to climate events forhousing in Mexico. . . . . . . . . . . . . . . . . . . . . . . . .59A note on climate events, infrastructureand territorial context of poverty in Mexico. . . . . . . .62Some international comparisons. . . . . . . . . . . . . . .64Section 4:What would it take to eradicate extremepoverty in Mexico by 2030?66How much growth is needed?. . . . . . . . . . . . . . . . .67How to increase the poverty reduction impact ofsocial public expenditures?..................68How to reduce vulnerability to climate events?. . . . . .70References72Annexes76Annex 1. Comparison of monetary poverty rateestimates from CONEVAL and the World Bank.......77Annex 2. Description of panels using ENOE. . . . . . . .83Annex 3. Demographic profiles of poverty andchronic labor poverty. . . . . . . . . . . . . . . . . . . . . . .86Notes90 List of FiguresFigure 1. Poverty rate and Poverty gap under the US$6.85 (2017 PPP) poverty line. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18Figure 2. Poverty, vulnerability and middleclass in Mexico. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18Figure 3. Components of changes in povertyrate by population groups. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20Figure 4. Growth incidence curves by sources ofhousehold income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21Figure 5. Components of changes in poverty rate bysources of income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23Figure 6. Labor market variables in recent years. . . . . . . . . . . .24Figure 7. Changes in poverty rate by income sources,and by sex, informality and minimum wage. . . . . . . . . . . . . . . .25Figure 8: Two measures of chronic and transient laborpoverty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30Figure 9. Indexes of income inequality. . . . . . . . . . . . . . . . . . . . .31Figure 10. Components of changes of incomeinequality (as per Generalized Entropy index) bypopulation groups. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31Figure 11. Components of changes of incomeinequality (as per Gini coefficient) rate by sources ofincome. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32Figure 12. Global long-term economic growth. . . . . . . . . . . . . .34Figure 13. Poverty and Inequality over time acrosscomparison countries. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35 Figure 14: Minimum wages, females employment,informal and agricultural employment, internationalcomparison. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37Figure 15: Evolution of indicators of social deprivation