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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

 

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