The Determinants of Poverty in Mexico

This study examines the determinants or correlates of poverty in México. The data used in the study come from the 1996 National Survey of Income and Expenditures of Households. A logistic regression model was estimated based on this data, with the probability of a household being extremely poor as the dependent variable and a set of economic and demographic variables as the explanatory variables. It was found that the variables that are positively correlated with the probability of being poor are: size of the household, living in a rural area, working in a rural occupation and being a domestic worker. Variables negatively correlated with the probability of being poor are: the education level of the household head, his/her age and whether he or she works in a professional or middle level occupation.