Publication: Living on the Edge : Vulnerability to Poverty and Public Transfers in Mexico
Date
2015-01
ISSN
Published
2015-01
Author(s)
Abstract
Social policy in Mexico has focused on
identifying and supporting chronically poor households. Yet,
Mexico has a significant number of households that are just
above the poverty line who are not eligible, by definition,
for antipoverty programs and are at risk of falling back
into poverty in the event of an economic crisis or shocks
like loss of employment and natural disasters. These shocks
can have serious negative effects on welfare in the absence
of social safety nets targeted to these households. This
study uses household survey data to better understand these
"vulnerable" households, including their profile
and risk exposure and, more importantly, to document the
extent to which these households are covered by public
transfers and insurance mechanisms. The analysis shows that
until 2010 most social programs, including the few with
productive components, such as vocational training and
productive investment grants, barely covered the vulnerable.
The study concludes that public policies need to pay
attention to the vulnerable households and find the right
policy mix between targeted interventions and universal
insurance schemes to serve this economic group.
Citation
“de la Fuente, Alejandro; Ortiz-Juarez, Eduardo; Rodriguez Castelan, Carlos. 2015. Living on the Edge : Vulnerability to Poverty and Public Transfers in Mexico. Policy Research Working Paper;No. 7165. © World Bank Group, Washington, DC. http://hdl.handle.net/10986/21398 License: CC BY 3.0 IGO.”
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