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Table 2 Decomposition of changes in rural and urban poverty in Mexico into its growth, distribution, and inflation components (1992–2014)

From: Growth, inequality and poverty dynamics in Mexico

  Poverty measures (% point change)
Rural sector Urban sector
Extreme poverty line Basic-needs poverty line Extreme poverty line Basic-needs poverty line
Effect H PG SPG H PG SPG H PG SPG H PG SPG
Growth − 0.13 − 0.06 − 0.04 − 0.15 − 0.09 − 0.06 0.51 0.17 0.07 0.65 0.34 0.19
Distribution − 9.02 − 4.90 − 2.91 − 8.52 − 6.32 − 4.56 − 2.43 − 1.17 − 0.44 − 0.04 − 1.13 − 0.94
Inflation 4.93 2.45 1.47 5.62 3.48 2.38 3.67 1.32 0.53 4.62 2.45 1.44
Residual − 0.24 − 0.49 − 0.47 0.48 − 0.28 − 0.42 0.88 − 0.01 − 0.12 0.70 0.31 0.08
Total change − 4.46 − 3.00 − 1.95 − 2.57 − 3.21 − 2.66 2.63 0.33 0.03 5.93 1.97 0.77
  1. The applied decomposition methodology was proposed by Günther and Grimm (2007) in the Journal of Development Economics. H, PG, and SPG stand for the headcount, poverty gap, and squared poverty gap indexes, which are part of the FGT poverty measures
  Relative roles of growth, redistribution, and inflation to the change in poverty in Mexico (1992–2014)
Rural sector Urban sector
Extreme poverty line Basic-needs poverty line Extreme poverty line Basic-needs poverty line
H PG SPG H PG SPG H PG SPG H PG SPG
Growth (%) 3.1 2.4 2.7 4.9 3.1 2.7 29 53 42 12.4 20 27
Distribution (%) 214 195 196 280 216 203 − 139 − 352 − 286 − 0.77 − 68 − 136
Inflation (%) − 117 − 97 − 99 − 184 − 119 − 106 210 399 343 88.3 148 209
Total (%) 100 100 100 100 100 100 100 100 100 100 100 100
  1. The applied decomposition methodology was proposed by Günther and Grimm (2007) in the Journal of Development Economics. H, PG, and SPG stand for the headcount, poverty gap, and squared poverty gap indexes, which are part of the FGT poverty measures