Two out of every three persons in Chiapas lived under the poverty line in 2022, making it the federal entity with the largest share of poor population in Mexico. On average, about 36 percent of the Mexican population was living in poverty that year.
Chiapas was the state in Mexico with the highest average extreme poverty rate in 2022. It was estimated that almost three out of ten people in Chiapas lived in a situation of extreme poverty. In contrast, Baja California was the state with the lowest extreme poverty rate, with 0.8 percent, well below the national average, which stood at 7.1 percent. The share of population living in poverty in Mexico amounted to 36.3 percent in 2022.
In 2022, approximately 4.7 percent of the Mexican population were living on less than 3.20 U.S. dollars per day, a considerable decrease in comparison to the previous year. Furthermore, unemployment rate in this Latin American country during this period was at 3.2 percent.
Poverty is considerably higher in the South
In 2022, the three states with the highest poverty rate in the Aztec country were Chiapas, Guerrero, and Oaxaca, all in the southern region. In contrast, the top eight federal entities with the lowest were all in the North. The clear division is further accentuated by the Northern Border Free Zone, which encompasses 43 municipalities in the Mexico-U.S. border with higher minimum wages and lower taxes. Poverty in states such as Chiapas reaches over 67 percent, which means two out of three residents are under the poverty line and almost one out of three under extreme poverty conditions.
A country troubled by inequality
Poverty and inequality are no news in Mexico. In the most recent data, around 80 percent of the total wealth of the country was concentrated in the top 10 percent of the population. Moreover, the bottom 50 percent had a negative share, meaning that half of the Mexican population had more debts than assets. But inequality does not only encompass wealth distribution, but Mexico also has a problem regarding gender inequality. The government has failed to achieve many of its goals to reduce the gap between genders.
Chiapas was the state in Mexico with the highest number of people living in extreme poverty in 2022. It was estimated that more than 1.6 million people in Chiapas lived in a situation of extreme poverty, out of a total of 9.1 million people at the national level. On the other hand, Baja California Sur was the state with the lowest number of people living in extreme poverty, with 6,400. Baja California Sur was also among the Mexican state with the lowest number of people living in poverty.
The state of Mexico was the Mexican state with the highest number of people living in poverty in 2022. It was estimated that more than 7.4 million people residing in the state of Mexico lived in a situation of poverty. On the other hand, Baja California Sur was the state with the lowest number of people living in poverty, with 112,000. Regarding extreme poverty, Chiapas was the state in Mexico with the highest average that year.
The number of people living in poverty in Mexico accounted for over 36 percent of the country's population in 2020. In that year, it was estimated that more than 46 million people in Mexico lived in a situation of poverty, a significant decrease of nearly nine millions when compared with 2020. During 2022, Chiapas was the state in Mexico with the highest poverty rate.
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A Computable General Equilibrium (CGE) model in a bottom-up approach - based on microfoundations - and a Social Accounting Matrix (SAM) for the regional economy of Chiapas are built. Methodology: This research applies a Computable General Equilibrium (CGE) model. It is a system of equations that describes an entire economy and all the interactions between productive sectors, commodity and factor markets, and institutions. All of the equations are solved simultaneously to find an economy-wide equilibrium in which demand and supply quantities are equal in every market at a certain level of prices (Burfisher, 2011). Two of the features of this model are that, on one hand, it implements a “bottom-up” approach, that is, it is focused on individual markets and economic agents. On the other hand, it is partially synthetic. In other words, most parameters can be calibrated with data from the SAM. Data framework: A Social Accounting Matrix (SAM) is a balanced square matrix that represents all income and expenditure flows between productive sectors, markets, and economic agents of an economy at a given period of time (Müller, Perez & Hubertus, 2009). It is based on the double entry bookkeeping in accounting, which requires that total revenue equals total expenditure in each single account included in the SAM (Breisinger, Thomas & Thurlow, 2010). The main features of the Chiapas SAM are that production activities are broken down in 10 sectors, according to the North American Industry Classification System (NAICS). There is one commodity per economic activity. Factors of production are disaggregated into formal and informal labor, and capital. Direct taxes are broken up into activity tax, social security contributions, household and corporate income taxes, ‘tenencia’ tax (ownership tax, i.e. a tax associated with the possession or use of vehicles), and regional payroll tax (‘nomina’). Indirect taxes, in turn, are value-added, sales and export taxes, and import tariffs. Subsidies on production by economic activity are also included. Households are disaggregated by income quintiles. Social transfers are split in non-conditional (Procampo, universal pension, PAL-Sin Hambre , temporary employment program, and the regional program Amanecer ) and Oportunidades. The latter is also broken down into its five components: food, elderly, education, child, and energy. The introduction of conditional cash transfers in the SAM is particularly relevant because it allows assessing the impact of changes in their amount and distribution on household income, poverty reduction, income inequality, and economic growth at the regional level. Data sources: - National Institute of Statistics and Geography (INEGI): 2012 National Employment and Occupation Survey 2013 Chiapas Statistical Yearbook 2012 National Household Income-Expenditure Survey 2012 Chiapas Statistical Perspective 2003-2012 Goods and Services Accounts (SCNM) 2003-2012 Institutional Sector Accounts (SCNM) 2008 Input-Output Table 2008 Supply and Use Tables - Chiapas State Committee of Statistical and Geographical Information (CEIEG): 2012 Chiapas Employment and Occupation Survey 2012 Chiapas Monthly Statistical Reports of IMSS-insured Workers - Federal Ministry of Labor and Social Welfare (STYPS): 2012 IMSS-registered Daily Salary by Economic Activity 2012 IMSS-insured Workers Quality/Lineage: With the raw data a Social Accounting Matrix for the regional economy of Chiapas was built Features: - Oportunidades broken down by component - Other non-conditional social transfers such as Procampo, PAL-Sin Hambre, Employment program, Universal pension, and the regional program 'Amanecer' - Informal wages - Satellites tables of formal and informal employment - Productive activities according to the North American Industry Classification System (NAICS) used in Mexico, Canada, and the United States of America - 10 economic activities - 10 Commodities (one per economic activity) - Factors of production: formal and informal labor and capital Purpose: 1. To assess the opportunity cost of financing "Oportunidades", Mexico's conditional cash transfers program, and its implications for rural development and rural economic growth in the regional setting of Chiapas. Moreover, 2. Pro-growth and pro-poor tax structures are also evaluated by applying standard economic analysis tools and modeling to substantially raise the federal non-oil tax revenue to finance social policy for poverty and inequality reduction. Dissertation: Viveros Añorve, J. L. (2015): The opportunity cost of financing "Oportunidades": a general equilibrium assessment for poverty reduction in Mexico. Ph.D. dissertation. Center for Development Research, Faculty of Agriculture, University of Bonn
The poverty rate in Mexico accounted for almost 36 percent of the country's population in 2022, a decrease of 7.6 percentage points when compared with the rate from 2020. The state of Mexico was the state with the highest number of people living in poverty in 2022.
The extreme poverty rate in Mexico accounted for less than one tenth of the country's population between 2012 and 2022. In the latter, it was estimated that 7.1 percent of the population of Mexico lived in a situation of extreme poverty, an considerable decrease when compared to 2020. Further, Chiapas was the state in Mexico with the highest average extreme poverty rate in 2022.
In 2022, Guerrero was the Mexican state with the highest share of population considered vulnerable due to a lack of adequate housing. Over 26 percent of the inhabitants in Guerrero were considered to live in poor housing conditions or without enough space, while Nuevo Leon had the lowest rate, at 3.2 percent. Guerrero was the second state in Mexico with the highest average extreme poverty rate only behind Chiapas.
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U.S. Census Bureau QuickFacts statistics for Mexico town, Oswego County, New York. QuickFacts data are derived from: Population Estimates, American Community Survey, Census of Population and Housing, Current Population Survey, Small Area Health Insurance Estimates, Small Area Income and Poverty Estimates, State and County Housing Unit Estimates, County Business Patterns, Nonemployer Statistics, Economic Census, Survey of Business Owners, Building Permits.
In 2023, about 17.8 percent of New Mexico's population lived below the poverty line. This was a slight increase from the previous year, when 17.6 percent of New Mexico residents lived below the poverty line. The poverty rate of the United States can be found here.
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The State of Veracruz-Llave, commonly known as Veracruz, is the third-largest Mexican state in terms of population, with 7 million, but growing only 1.05 percent per year, which is below the national rate of 1.85 percent. The population of the state is predominantly urban (59 percent) and young (44 percent is 19 years old and younger). Veracruz's indigenous population is the third largest of any Mexican state, and represents close to 10 percent of the state total. Veracruz is one of the poorest states in Mexico. It still is the fifth-largest state in terms of GDP. There are four problems from an economic and social development point of view: (a) inadequate access to communications and public services in rural areas, (b) low productivity of the labor force, (c) low diversification of industries in the northern and southern regions of the state, and (d) lack of a coordinated strategy among government agencies. The following policies address these problems: 1. Develop a coordinated strategy, under the umbrella of the state's six-year development plan, which would support economic growth while improving the ability of the poor to participate in it. 2. Invest in physical capital such as roads and water. Roads are strategic for economic and social development of rural regions. Nevertheless, the authorities need to find a balance between providing overly costly infrastructure to villages, and providing too little, so that the residents have no access to the transport system. Shortage of water in rural areas seriously harms the well being of the population. 3. Invest in human capital, in particular, improve the provision of technical training to rural areas, and improve the quality and relevance of basic and secondary education. In the global economy, workers need the capacity to learn quickly and take advantage of current information and emerging technologies. 4. Analyze the labor market in Veracruz, with a study of its relationship with economic development. 5 . Create a strategic plan for economic development that emphasizes diversifying into high-value industries, including in the northern and southern regions. The state can do little for the oil sector except to lobby for the energy reform, since it is by constitution controlled at the federal level. World market conditions offer little hope for a major comeback in sugarcane and coffee.
In 2022, Chiapas was the Mexican state with the highest share of population considered socially vulnerable due to a lack of access to health services. Around 66.1 percent of the people living in the southern state were considered in that situation, while Baja California Sur had the lowest rate, at 17.3 percent.
In Mexico, only 27.1 percent of the population were considered neither poor nor vulnerable in 2022. Coahuila was the state in Mexico with the highest share of people who don't suffer from poverty or other social deprivations, reaching 47 percent, whereas Chiapas was the state with the lowest rate, with 8.1 percent. In that same year, Chiapas was the Mexican state with the highest number of people living under extreme poverty.
Baja California was the state in Mexico with the highest share of population considered vulnerable due to social deprivation in 2022. It was estimated that 38.1 percent of the people living in the state suffered from social deprivation. On the other hand, Tlaxcala was the state with the lowest rate of socially deprived population, with 21 percent. That same year, Chiapas was the Mexican state with the highest number of people living in extreme poverty.
In the year 2022, when considering the Mexico State, the most common circumstance observed among the population regarding poverty was categorized as moderate poverty, encompassing approximately 36.9 percent of the population. Furthermore, a remaining 39.5 percent of the population either lived in poverty or faced precarious economic conditions.
In the year 2020, the Mexican state of Oaxaca faced a prevalent condition of moderate poverty, affecting around **** percent of its inhabitants. The remaining ***** percent of the population either lived in poverty or faced challenging circumstances.
The Mexico Peace Index ranks states on a scale from * to *, with * being the most peaceful. The index comprises crime, violence, and policing indicators. In 2024, Colima received the worst score with **** points, followed by Baja California with **** points. On the other hand, Yucatán was considered the most peaceful state in the country that year.
In 2020, amidst the COVID-19 pandemic, it was estimated that 8.9 percent of the Mexican population were vulnerable due to a low income or a lack of it. This represents a slight increase when compared with 2018, when eight percent of the population were considered to be in that situation. Baja California was the state in Mexico with the highest share of vulnerable population due to social deprivation in 2022.
Two out of every three persons in Chiapas lived under the poverty line in 2022, making it the federal entity with the largest share of poor population in Mexico. On average, about 36 percent of the Mexican population was living in poverty that year.