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    Published on Tuesday, July 2, 2024

    Mexico | How poor is the population that is in labor poverty?

    Summary

    In the 2024-I quarter, on average, the population in labor poverty was able to cover only 42.3% of the food basket with their labor income. In Baja California, Guerrero and Oaxaca, people in labor poverty can purchase less than 1/3 of the food basket.

    Key points

    • Key points:
    • In the 2024-I quarter, on average, the population in working poverty was able to cover only 42.3% of the food basket with their labor income.
    • Although the urban-rural difference in the gap has decreased since 2020-III, this is because the urban population can now buy a smaller part of the food basket.
    • A reduction in the gaps by sex is observed, since while in 2006-II men in poverty could buy 46.9% of the food basket and women 33.7%, in 2023-III the proportion that were able to purchase was 45.1% and 38.9%, respectively.
    • In Baja California, Guerrero and Oaxaca, people in labor poverty can purchase less than 1/3 of the food basket with their labor income.
    • In 2005, on average a person who was not in labor poverty and worked in the formal sector could buy about 8.0 food baskets, while in 2024-I they could buy 5.8 baskets with their labor income.

    Geographies

    Topics

    Authors

    Guillermo Jr. Cárdenas Salgado BBVA Research - Senior Economist
    Marco Lara BBVA Research - Senior Economist
    Juan José Li Ng BBVA Research - Senior Economist

    Documents and files

    Report (PDF)

    Profundidad_Pobreza_Laboral_Mexico_2024.pdf

    Spanish - July 2, 2024

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