The Effectiveness of Social Policy in Mexico: An Analysis of the Reduction of Monetary Poverty by Income Transfer Programs

This study examines the reduction of income poverty through federal monetary transfers in Mexico. To do so, we compare the net market income poverty rate with the disposable income poverty rate of several social groups. The main purpose is to establish, on the one hand, the poorest social groups in terms of market income, and on the other, how much poverty is reduced after the distribution of federal monetary transfers. We present a comparison between the reduction of income poverty by social security transfers and by means tested cash transfer programs, in order to provide an evaluation of the effectiveness of the social policy in the reduction of income poverty. Likewise, we provide some public policy implications from the analysis.