Mexican household income has risen and income inequality has decreased slightly following AMLO's presidency
Mexican household incomes have experienced growth over the past few years, but persistent income inequality remains a significant challenge, as revealed by the National Survey of Household Income and Expenditure (ENIGH) 2024, published by the National Institute of Statistics and Geography (INEGI) in July.
Between 2022 and 2024, the average quarterly household income reached 77,864 pesos, marking a 10.6% increase compared to the survey's 2020-2022 edition. However, regional disparities and poverty persist, with states like Guerrero facing higher vulnerability and poverty levels compared to relatively better-off states like Chihuahua.
Income transfers, including remittances, private or public scholarships, gifts from other households, and social programs, make up 18% of household income. Notably, transfers recorded the greatest growth as a source of income between 2016 and 2024, with an increase of 26.5%.
The survey covers the years 2016-2024 and indicates that the number of household members aged 15 to 64 decreased by an average of 5.2%, while the number of household members under the age of 15 decreased by 24.8%. Simultaneously, the number of household members aged 65 and over increased by 21.3%.
Despite the growth in household incomes, the number of income earners per household dropped by 10.2%, and among employed household members, there was a 3.4% decrease during the same period. Earners in the top 10% saw their income drop by 8% since 2016, while the poorest 10% experienced a substantial income increase of over 35%.
Income inequality has diminished since 2016, but a significant income gap still remains between the highest and lowest brackets. The lowest-income households reported an average quarterly income of 16,795 pesos, while those in the highest decile earned 236,095 pesos per quarter.
Policy efforts including tax adjustments and social welfare expansions aim to reduce inequality, but progress has been slow and uneven. The COVID-19 pandemic and global economic fluctuations since 2020 have also influenced incomes, sometimes exacerbating disparities.
In summary, although Mexican household incomes have generally increased since 2016, especially in urban and higher-income segments, regional disparities and poverty persist, highlighting the ongoing challenge of reducing income inequality in Mexico.
- Despite the growth in average household incomes, the income gap between the wealthiest and poorest households remains substantial, with the top decile earning nearly 14 times more than the lowest decile, as revealed by the ENIGH 2024 survey.
- The finance and business sectors could invest in initiatives aimed at closing the income gap in Mexico, as persistent inequality, particularly in regions like Guerrero, hampers national economic growth and stability, as indicated by the ENIGH 2024 report published by INEGI.
