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Poverty Convergence in a Time of Stagnation: A Municipal-Level Perspective from Mexico (1992-2014)

Luis Lopez-Calva (), Eduardo Ortiz-Juarez () and Carlos Rodriguez Castelan
Authors registered in the RePEc Author Service: Carlos Rodríguez-Castelán

No 9038, Policy Research Working Paper Series from The World Bank

Abstract: This paper exploits a novel municipal-level data set to explore patterns of convergence in income and poverty in Mexico during 1992-2014. The paper finds that, despite a context of overall stagnant economic growth and poverty reduction, there is evidence of income and poverty convergence at the municipal level. The findings suggest that these convergence processes stem from a combination of considerable positive performance among the poorest municipalities and stagnant and deteriorating performance among richer municipalities. Re distributive programs, such as federal transfers to poor municipalities and cash transfers to poor households, seem to have played an important role in driving these results by bolstering income growth among the poorest municipalities, while also inducing progressive changes in the distribution of income.

Keywords: Inequality; Economic Growth; Industrial Economics; Economic Theory&Research; Disability; Services&Transfers to Poor; Economic Assistance; Access of Poor to Social Services; Poverty Reduction Strategies; International Trade and Trade Rules (search for similar items in EconPapers)
Date: 2019-10-09
New Economics Papers: this item is included in nep-dev
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