REDISTRIBUTIVE EFFECTS FROM SOCIAL EXPENDITURE COMPONENTS IN MEXICO, 2008-2020

Abstract

We analyze the effects of social expenditure components on income distribution in Mexico using a panel of the 32 states. A model of determinants is specified to explains the Gini coefficient behavior by means of social spending, poverty, and growth. We use a dynamic panel and the Arellano-Bond estimator for the period 2008-2020 and show that public expenditures on education and health have effects on reducing inequality that are greater than the effects of conditional transfers and spending on basic services.