Impact and progressivity of redistributive social programmes in Mexico. An analysis by state, 2016-2022

Abstract

As in other countries, the aim in Mexico is to combat poverty and inequality through income redistribution policies. In recent years, an increase in the number of transfers has been observed, indicating a
paradigm shift. In this study, we analyze whether this shift has led to a decrease in poverty and inequality in Mexico between 2016 and 2022. Using microsimulation models and progressivity analysis, we
propose an alternative methodology for evaluating the impact of redistributive public policy in Mexico.
Microsimulation scenarios demonstrate that despite the increase in funds redistributed, the policies are
not progressive and are failing to reduce poverty to the extent they could.