Multidimensional poverty and the labor market in Mexico

Abstract

Multidimensional poverty is analyzed from the perspective of the labor market, considering the 32 states of Mexico during the period 2010-2016. A micro-panel with random effects is estimated, and it is found that the unemployed population, informal employment and price levels have a direct and significant effect on multidimensional poverty. It is also found that a deterioration in the capacity of the economy to generate formal jobs detonates poverty and produces, as well as a growth of informality accompanied by low wages and social deprivation. Inflation operates against poverty and produces a deterioration of real wages.