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Wage Hikes and Social Transfers Credited With Lowering Inequality in Mexico, Researcher Urges Fiscal Reform

Mexico remains one of the most unequal countries in the world.

Overview

  • In official data cited in the coverage, Inegi reports 13.4 million people exited poverty between 2018 and 2024.
  • Real purchasing power of the general minimum wage has recovered about 154.2% between the prior and current administrations.
  • The researcher attributes recent inequality declines primarily to sustained minimum-wage increases and social transfers, including Benito Juárez scholarships and public services.
  • The recommended policy mix pairs predistribution through higher wages and stronger labor rights with redistribution via progressive taxes and transfers.
  • Further steps urged include broadening the tax base and taxing top wealth—potentially a ~2% net-wealth levy, as discussed in Brazil and South Africa—to fund greater investment in education and health.