Chronic and Transient Poverty in Mexico: 2002-2005

Economics Bulletin, Vol. 30, No. 4, pp. 3188-3200, 2010

13 Pages Posted: 24 Dec 2010 Last revised: 20 Aug 2014

See all articles by Jorge Garza-Rodriguez

Jorge Garza-Rodriguez

Universidad de Monterrey

Martha Gonzalez-Martinez

Universidad de Monterrey (UDEM)

Marcela Quiroga-Lozano

Universidad de Monterrey (UDEM)

Luz Solis-Santoyo

Universidad de Monterrey (UDEM)

Gabriela Yarto-Weber

Universidad de Monterrey (UDEM)

Date Written: December 2, 2010

Abstract

This paper uses panel data to decompose total poverty into its chronic and transient components and to estimate the determinants of each type of poverty for the case of Mexico. It was found that 69 percent of total poverty is chronic and 31 percent is transient. Using censored quantile regressions techniques, it was observed that the variables explaining chronic poverty are different from those explaining transient poverty. These results indicate that chronic poverty is an issue which should have a high priority on the public policy agenda and that different public policies are needed to target chronic and transient poverty.

Keywords: poverty, chronic poverty, Mexico

JEL Classification: I32

Suggested Citation

Garza-Rodriguez, Jorge and Gonzalez-Martinez, Martha and Quiroga-Lozano, Marcela and Solis-Santoyo, Luz and Yarto-Weber, Gabriela, Chronic and Transient Poverty in Mexico: 2002-2005 (December 2, 2010). Economics Bulletin, Vol. 30, No. 4, pp. 3188-3200, 2010. Available at SSRN: https://ssrn.com/abstract=1730449

Jorge Garza-Rodriguez (Contact Author)

Universidad de Monterrey ( email )

venida Ignacio Morones Prieto 4500 Pte
San Pedro, 66238
Mexico

Martha Gonzalez-Martinez

Universidad de Monterrey (UDEM) ( email )

Av. Morones Prieto 4500 Pte.
Monterrey, Nuevo León 66238
Mexico

Marcela Quiroga-Lozano

Universidad de Monterrey (UDEM) ( email )

Av. Morones Prieto 4500 Pte.
Monterrey, Nuevo León 66238
Mexico

Luz Solis-Santoyo

Universidad de Monterrey (UDEM) ( email )

Av. Morones Prieto 4500 Pte.
Monterrey, Nuevo León 66238
Mexico

Gabriela Yarto-Weber

Universidad de Monterrey (UDEM) ( email )

Av. Morones Prieto 4500 Pte.
Monterrey, Nuevo León 66238
Mexico

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