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Inflation and poverty in México 1993–2009

Carlo Alcaraz Pribaz ()

Mexican Stata Users' Group Meetings 2013 from Stata Users Group

Abstract: In this paper, we analyze the effects of inflation on poverty in Mexico from 1993 to 2009. We also include sector composition of GDP and informal work as determinants of poverty in Mexico. We use two measures for poverty: the percentage population whose household income per capita is below the poverty line, and poverty gap. We estimate a fixed-effects model and obtain the following results: 1) a 10% increase in inflation translates into 13% more poverty and a 17% increase in the poverty gap; 2) there is a positive relation between poverty and informal employment; and 3) relative growth of the services sector has contributed to the reduction of poverty.

Date: 2013-05-13
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