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The dynamics of poverty transitions in Mexico

Author

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  • Jennifer Fernández-Ramos
  • Ana K. Garcia-Guerra
  • Jorge Garza-Rodriguez
  • Gabriela Morales-Ramirez

Abstract

Purpose - More than half of the Mexican population lives in poverty. While there are many studies about poverty in Mexico, there are very few about the dynamics of poverty. The purpose of this paper is to measure chronic and transient poverty in Mexico and to analyze its determinants. Design/methodology/approach - Based on the spells approach, a transition matrix was estimated and a multinomial logistic regression analysis was conducted to investigate the effects of various socioeconomic and demographic variables upon the dynamics of poverty. Findings - It was found that 36 percent of households are chronically poor and 64 percent are transiently poor. The results show that variables directly related to chronic poverty are belonging to an ethnic minority group, living in a rural area, 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 with the probability of escaping poverty. Originality/value - 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.

Suggested Citation

  • Jennifer Fernández-Ramos & Ana K. Garcia-Guerra & Jorge Garza-Rodriguez & Gabriela Morales-Ramirez, 2016. "The dynamics of poverty transitions in Mexico," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 43(11), pages 1082-1095, November.
    • Handle: RePEc:eme:ijsepp:ijse-04-2015-0084
    DOI: 10.1108/IJSE-04-2015-0084
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    References listed on IDEAS

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    Cited by:

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    2. Robert Schoen, 2020. "Dynamic Multistate Models With Constant Cross-Product Ratios: Applications to Poverty Status," Demography, Springer;Population Association of America (PAA), vol. 57(2), pages 779-797, April.
    3. Md. Shahidul Islam & Khurshed Alam, 2018. "Does social capital reduce poverty? A cross-sectional study of rural household in Bangladesh," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 45(11), pages 1515-1532, August.
    4. Paul S. F. Yip & Chenhong Peng & Ho Kit Wong & Bing Kwan So, 2020. "Social Welfare Transfers and Poverty Transitions in Hong Kong: Evidence from Two-Wave Panel Data," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 151(3), pages 841-864, October.
    5. Almas Heshmati & Esfandiar Maasoumi & Guanghua Wan, 2019. "An Analysis of the Determinants of Household Consumption Expenditure and Poverty in India," Economies, MDPI, vol. 7(4), pages 1-27, September.
    6. Xiaoying Wu & Xinhua Qi & Shan Yang & Chao Ye & Biao Sun, 2019. "Research on the Intergenerational Transmission of Poverty in Rural China Based on Sustainable Livelihood Analysis Framework: A Case Study of Six Poverty-Stricken Counties," Sustainability, MDPI, vol. 11(8), pages 1-22, April.
    7. Ramos, Minerva E. & Garza-Rodríguez, Jorge & Gibaja-Romero, Damian E., 2022. "Automation of employment in the presence of industry 4.0: The case of Mexico," Technology in Society, Elsevier, vol. 68(C).
    8. Jorge Garza-Rodriguez & Gustavo A. Ayala-Diaz & Gerardo G. Coronado-Saucedo & Eugenio G. Garza-Garza & Oscar Ovando-Martinez, 2021. "Determinants of Poverty in Mexico: A Quantile Regression Analysis," Economies, MDPI, vol. 9(2), pages 1-24, April.

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