Research Paper on Mexico’s Poverty Determinants: A Quantile Regression Analysis

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Title: Mexico’s Poverty Determinants: A Quantile Regression Analysis

Abstract: The majority of studies on the causes of poverty do not take into account that the relative importance of each cause can change depending on the level of poverty experienced by each group of poor people. Despite the fact that the levels of poverty among the various poor groups vary greatly, this strategy has not been considered in the studies done so far for Mexico. To create better policies for combating poverty that take into account how each factor that explains poverty affects each group of people who suffer from poverty differently, it is crucial to investigate these differences. This article investigates the factors that contribute to household poverty in Mexico. The study estimates a probit model and a quantile regression model using data from the Mexican National Household Income and Expenditure Survey (ENIGH) 2018 to examine the degree to which the determinants of poverty vary across the poverty spectrum. The probit model’s findings show that poorer households are more likely to have multiple members, a female head of household, or native language speakers. In particular for households in extreme poverty but also for the other income categories examined for several of the explanatory variables used in the models, the results of the quantile regressions show that there are significant differences with the results of the simple ordinary least squares model. If a household is in the southern region, the household head speaks an indigenous language, or the household head is elderly, these factors have the greatest impact on households in the extremely poor and deeply poor categories. Higher educational attainment has been found to be an efficient means of raising income for people in all levels of poverty.

Keywords: poverty determinants; poverty spectrum; quantile regression; probit; Mexico

Paper Quality: SCOPUS / Web of Science Level Research Paper

Subject: Economics

Writer Experience: 20+ Years

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