Distribute or redistribute? Poverty, inequality and public policy in Mexico

Abstract

The main variable to explain the persistence of poverty and the deepening of inequality in Mexico is the precariousness of the income received by workers, both formal and informal. The minimum wage is insufficient to acquire the individual basic basket and the average salary is not enough to acquire the basic family basket, which perpetuates poverty. Social policies are not enough to effectively combat poverty and inequality. In addition, well-designed and implemented redistributive policies of wealth and power are needed to counteract the growing social polarization and encourage economic growth.