Halving poverty in Mexico

We estimate the required time and the minimum necessary growth rate to halve poverty incidence and poverty intensity in Mexico’s rural and urban areas for a series of counterfactual distribution and growth scenarios. Results show that, given the current income distribution, per capita incomes in the rural area would have to grow faster –in some cases eight times faster– than they have done historically to shrink poverty by half by 2015. In contrast, income in the urban sector would have to grow around 1 per cent per year to reach the same goal, which seems a more reasonable outcome given its behavior in past years.