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Social Spending and Poverty Reduction in Mexico from 2000 to 2022: Have States Contributed to It?

Author

Listed:
  • Anahely Medrano

    (CONAHCYT-CentroGeo)

  • Brisna Beltran

    (Instituto de Investigaciones para el Desarrollo con Equidad, Universidad Iberoamericana)

Abstract

Poverty is a major socio-economic problem in Mexico. At the national level, 36.3% of the population lived below the official poverty line in 2022. Although poverty rates varied across states, they have remained rather stable on average from 2000 to 2020. At the same time, social spending at the state level, in general, has maintained a relatively increasing trend in the last two decades. However, analysis of social spending and poverty at the subnational level is still scarce in Mexico. This study aims to analyze the impact of total and sectoral social spending on poverty reduction at the state level, from 2000 to 2022. This analysis uses novel data from state public accounts of the thirty-one states and Mexico City. The results of this study show that there is no significant relationship between total social spending and extreme income poverty and multidimensional poverty at the state level. However, extreme income poverty and healthcare and education spending showed a negative relationship. These results suggest that, on average, the social investment of states has had a rather meager effect in terms of poverty reduction in Mexico.

Suggested Citation

  • Anahely Medrano & Brisna Beltran, 2024. "Social Spending and Poverty Reduction in Mexico from 2000 to 2022: Have States Contributed to It?," Sobre México. Revista de Economía, Sobre México. Temas en economía, vol. 1(10), pages 101-136.
  • Handle: RePEc:smx:journl:10:101:136
    as

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    File URL: https://sobremexico-revista.ibero.mx/index.php/Revista_Sobre_Mexico/article/view/162
    File Function: First version, 2024
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    References listed on IDEAS

    as
    1. Anderson, Edward & d'Orey, Maria Ana Jalles & Duvendack, Maren & Esposito, Lucio, 2018. "Does Government Spending Affect Income Poverty? A Meta-regression Analysis," World Development, Elsevier, vol. 103(C), pages 60-71.
    2. Nora Lustig & Claudiney Pereira, 2016. "The Impact of the Tax System and Social Spending in Income Redistribution and Poverty Reduction in Latin America," Hacienda Pública Española / Review of Public Economics, IEF, vol. 219(4), pages 121-136, December.
    3. Magdalena Cyrek, 2019. "Government social spending in the EU countries: efficiency in poverty and income inequality reduction," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 14(3), pages 405-424, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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