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The impact of COVID-19 on inequality and poverty in Mexico/El impacto del COVID-19 en la desigualdad y la pobreza en México

Author

Listed:
  • Nora Lustig

    (Tulane University)

  • Valentina Martínez Pabón

    (Tulane University)

Abstract

We use microsimulation to estimate the short-term distributional consequences of the COVID-19 pandemic in Mexico. Although the potential increase in poverty is significant, we find that compared to their pre-shock income, those who lost the most are the moderate poor and the vulnerable to poverty. We find that the impact on poverty is more severe for urban households. Poverty increases less for rural households and the indigenous population. Compared to Argentina, Brazil, and Colombia, Mexico stands out because the government did not introduce additional transfers to mitigate the impact of the pandemic on living standards.

Suggested Citation

  • Nora Lustig & Valentina Martínez Pabón, 2021. "The impact of COVID-19 on inequality and poverty in Mexico/El impacto del COVID-19 en la desigualdad y la pobreza en México," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 36(1), pages 7-25.
    • Handle: RePEc:emx:esteco:v:36:y:2021:i:1:p:7-25
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    File URL: https://estudioseconomicos.colmex.mx/index.php/economicos/article/view/416/529
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    More about this item

    Keywords

    COVID-19; inequality; Mexico; poverty; microsimulations;
    All these keywords.

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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