Household Incomes Rise as Mexico Narrows Income Inequality Gap – Mexico Business News

Report on Mexico’s Progress Towards Sustainable Development Goals: Income and Inequality (2020-2024)

Advancements in Economic Well-being and Decent Work (SDG 1 & SDG 8)

• Data from Mexico’s National Institute of Statistics and Geography (INEGI) indicates progress toward SDG 1 (No Poverty) and SDG 8 (Decent Work and Economic Growth), with a steady increase in household incomes between 2020 and 2024.
• The 2024 National Survey of Household Income and Expenditure (ENIGH) shows the average monthly household income rose to MX$25,955 (US$1,372), a 10.6% real increase compared to 2022.
• Labor income, central to SDG 8, remains the largest component, accounting for 65.6% of total household earnings and reflecting a sustained economic recovery.

Strides in Reducing Inequality (SDG 10)

• Mexico has made significant advances in achieving SDG 10 (Reduced Inequalities), evidenced by a marked reduction in the national income gap.
• The income ratio between the wealthiest 10% and the poorest 10% of households narrowed from 21 times in 2016 to 14 times in 2024.
• This move toward more equitable income distribution, a key target of SDG 10, is further demonstrated by shifts in national income shares:
  • The share for the poorest decile increased from 1.8% in 2016 to 2.2% in 2024.
  • The share for the richest decile decreased from 36.4% to 30.3% during the same period.
• The Minister of Labor and Social Welfare attributes this progress to economic policies prioritizing the well-being of the poor, aligning with the core principles of the SDGs.

Remaining Challenges for Inclusive Development

1. Gender Equality (SDG 5): Persistent gender wage gaps remain a significant challenge, hindering the full achievement of economic equality for women.
2. Inclusive Employment (SDG 8 & SDG 10): Limited access to employment for people with disabilities continues to be a barrier to inclusive growth and social equity.
3. Inclusion of Marginalized Groups (SDG 10): The ongoing exclusion of indigenous populations highlights a critical area for action to ensure that development progress leaves no one behind.

SDGs Addressed in the Article

• SDG 1: No Poverty: The article’s focus on the steady increase in household incomes, particularly the rising income share of the poorest decile, directly relates to efforts to end poverty in all its forms.
• SDG 8: Decent Work and Economic Growth: The article discusses the rise in labor income as the primary source of household earnings. It also highlights challenges such as gender wage gaps and limited employment access for specific groups, which are central to the goal of achieving decent work for all.
• SDG 10: Reduced Inequalities: This is a primary theme of the article, which explicitly details the reduction in income inequality between the wealthiest and poorest households in Mexico and the progress in income redistribution.

Identified SDG Targets

1. SDG 1: No Poverty

   • Target 1.2: By 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions. The article supports this by highlighting that the poorest decile’s share of national income increased from 1.8% to 2.2%, indicating an improvement in the economic status of the most vulnerable.

2. SDG 8: Decent Work and Economic Growth

   • Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value. The article directly points to this target by mentioning the “persistent gender wage gaps, limited employment access for people with disabilities, and exclusion of indigenous populations” as ongoing challenges.

3. SDG 10: Reduced Inequalities

   • Target 10.1: By 2030, progressively achieve and sustain income growth of the bottom 40 per cent of the population at a rate higher than the national average. The article provides direct evidence for this by stating that the income share of the poorest decile increased while the share of the richest decile decreased, demonstrating progress in income redistribution.
   • Target 10.2: By 2030, empower and promote the social, economic and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status. The article implies this target by identifying the “exclusion of indigenous populations” and limited access for people with disabilities as areas needing improvement.

Mentioned or Implied Indicators

1. SDG 1: No Poverty

   • Implied Indicator (related to 1.2.1): Proportion of population living below the national poverty line. While not explicitly stated, the increase in the average monthly household income to MX$25,955 and the rising income of the poorest decile are used to measure progress against poverty.

2. SDG 8: Decent Work and Economic Growth

   • Implied Indicator (related to 8.5.1): Average hourly earnings of female and male employees. The mention of “persistent gender wage gaps” directly implies the use of this indicator to track disparities in pay between genders.
   • Implied Indicator (related to 8.5.2): Unemployment rate, by sex, age and persons with disabilities. The reference to “limited employment access for people with disabilities, and exclusion of indigenous populations” suggests that employment rates for these specific demographic groups are being monitored.

3. SDG 10: Reduced Inequalities

   • Indicator 10.1.1: Growth rates of household expenditure or income per capita among the bottom 40 per cent of the population and the total population. The article provides specific data for this: “The ratio between the top 10% and bottom 10% of households narrowed from 21 times in 2016 to 14 times in 2024,” and “The share of national income received by the poorest decile increased from 1.8% in 2016 to 2.2% in 2024.”
   • Indicator 10.4.1: Labour share of GDP, comprising wages and social protection transfers. The article provides a related measure by stating that “Labor income remains the largest source, accounting for 65.6% of total household earnings.”

SDGs, Targets, and Indicators Summary

Source: mexicobusiness.news