The Socioeconomic Conditions Module of the …3.0 57.4 2.8 52.3 Access to food1.4 27.5 1.0 19.4 Nuevo León Main indicators of deprivation 2014 2016 Million people % Million people

The Socioeconomic Conditions Module of the National Survey

of Household Income and Expenditures (MCS-ENIGH):

Input for multidimensional poverty measuring in Mexico

Introduction

Ley General de Desarrollo Social

Multidimensional Poverty Measurement in Mexico

Socioeconomic Conditions Module (MCS) and ENIGH

Evolution of poverty in Mexico

Main indicators of deprivation

ENIGH 2016: Statiscal and operational design

ENIGH 2016: Total current income quarterly

Contents

ENIGH 2016: Average quarterly current income per deciles

ENIGH 2016: Total current expenditure quarterly by big items ofexpenditure

ENIGH 2016: Average quarterly current income by household byurban-rural federative entity

ENIGH 2016: Average quarterly current income by household byfederative entity

ENIGH 2016: Distribution of expenditure (total) by federativeentity

Contents

Introduction Poverty is a global and painful social phenomenon, whose mitigation and desirable

solution requires the joint and coordinated action of government and society, and ofcourse it should be properly measured.

In Mexico, as in most countries, the monetary measurement of poverty has beenpredominantly used as input to income.

Consistent with the observations on the limitations of the monetary method ofmeasuring poverty and international recommendations, the Ley General deDesarrollo Social (LGDS) of Mexico in 2004, established that a multidimensionalpoverty measurement should be carried out for the country.

Social Development Law (LGDS)

On January 20, 2004, the Social Development Law (LGDS) was approved.

This law indicates as objectives of the National Policy for Social Development thepromotion of conditions that ensure the enjoyment of social rights (both individualand collective), as well as the promotion of economic development with a socialperspective aimed to raise population income and to reduce economic and socialinequality.

Social Development Law (LGDS)In order to evaluate the social development policy comprehensively, the law creates

the Consejo Nacional de Evaluación de la Política de Desarrollo Social

(CONEVAL) and in its articles 36 and 37, it entrusts to establish the guidelines and

criteria for the definition, identification and measurement of poverty.

And for this, the LGDS instructs the CONEVAL, the following criteria:

It must be carried out every two years at the state level and every five

years at the municipal scale.

CONEVAL should use the information generated by the Instituto

Nacional de Estadística y Geografía (INEGI).

Social Development Law (LGDS)

And for this, the LGDS instructs the CONEVAL, thefollowing criteria:

• At least, the following indicators must be incorporated:

Current per capita income.

Average educational gap in the household.

Access to health services.

Access to social security.

Quality and spaces of the dwelling.

Access to basic services in the dwelling.

Access to food.


CONEVAL classifies people according to the income they receive and the social

deficits they present.

A person may be classified in one, and only one, of the following groups:

Multidimensional poor. People with an income below the wellbeing threshold and

with one or more social deprivations.

Vulnerable due to social deprivation. Socially deprived people with an income

higher than the wellbeing threshold.


A person may be classified in one, and only one, of the following groups:

Vulnerable due to income. Population with no social deprivations and with an

income below the wellbeing threshold.

Not multidimensional poor and not vulnerable. Population with an income higher

than the wellbeing threshold and with no social deprivations.


During the years 2006 to 2008, an intense collaboration process took place between

CONEVAL and INEGI, seeking to fulfill the mandate of the LGDS.

The two institutions agreed to the

planning, testing and consolidation of the

Socioeconomic Conditions Module (MCS)

as a complement to ENIGH. The first

survey of the MCS in the company of the

ENIGH was in 2008 and followed by

similar surveys in 2010, 2012 and 2014.

The MCS captures the sociodemographic, housing, occupancy and income

information captured by the ENIGH, in addition to specific topics for multidimensional

poverty measurement and context variables.

Expressed in simple terms, it can be said that the MCS is an ENIGH without the

collection of household consumption expenditures.


On August 28, 2017, INEGI published the results of the ENIGH 2016, which constitutes the

start of a new series of the survey, as well as a statistical model with the inputs so that

CONEVAL can continue its multidimensional poverty measurement. According that, CONEVAL

published on its institutional page, on August 30, 2017, the following results:

Evolution of poverty in Mexico

Multidimensional poverty category2014 2016

Million people % Million people %

Total population 119.9 100.0 122.6 100.0

Multidimensional poor 55.3 46.2 53.4 43.6

Vulnerable due to social deprivation 31.5 26.3 32.9 26.8

Vulnerable due to income 8.5 7.1 8.6 7.0

Not multidimensional poor and notvulnerable

24.6 20.5 27.8 22.6

SOURCE: CONEVAL.

Evolution of poverty in selected federative entitiesCiudad de México

Multidimensional poverty category

2014 2016

Millionpeople

%Millionpeople

%



Vulnerable due to social deprivation

2.5 28.0 2.5 28.9


Nuevo León


2014 2016

Millionpeople

%Millionpeople

%




1.4 28.0 1.8 34.6


Oaxaca


2014 2016

Millionpeople

%Millionpeople

%




0.9 23.3 0.8 19.9


Chiapas


2014 2016

Millionpeople

%Millionpeople

%




0.8 15.3 0.7 13.8


SOURCE: CONEVAL

Evolution of poverty in selected federative entities

Ciudad de México

27.6%

28.9%6.8%

36.7%

Nuevo León

14.2%

34.6%

5.3%

45.9%

Chiapas Oaxaca

70.4%

19.9%

2.3% 7.4%

77.1%

13.8%

2.7% 6.4%

Multidimensional povertycategory

Multidimensional poor


Vulnerable due to incomeNot multidimensional poor and not vulnerable

2016

SOURCE: CONEVAL


National


2014 2016

Million people % Million people %

Educational gap 22.4 18.7 21.3 17.4

Access to health services 21.8 18.2 19.1 15.5

Access to social security 70.1 58.5 68.4 55.8

Quality and spaces of the dweling

14.8 12.3 14.8 12.0

Access to basic services in the dwelling

25.4 21.2 23.7 19.3

Access to food 28.0 23.4 24.6 20.1

SOURCE: CONEVAL

As part of themultidimensional povertymeasurement, CONEVAL presentstoo, the mainindicators of deprivation

Main indicators of deprivation by selected federative entities

Ciudad de México


2014 2016

Millionpeople

%Millionpeople

%





0.5 5.4 0.5 5.9


0.1 1.7 0.2 2.1

Access to food 1.0 11.7 1.0 11.5

Chiapas


2014 2016

Millionpeople

%Millionpeople

%





1.4 26.9 1.3 24.5


3.0 57.4 2.8 52.3

Access to food 1.4 27.5 1.0 19.4

Nuevo León


2014 2016

Millionpeople

%Millionpeople

%





0.2 4.6 0.3 5.0


0.2 4.3 0.1 2.7

Access to food 0.7 14.2 0.7 14.4

Oaxaca


2014 2016

Millionpeople

%Millionpeople

%





1.0 24.5 1.1 26.3


2.4 60.5 2.5 62.0

Access to food 1.4 36.1 1.3 31.4

SOURCE: CONEVAL

ENIGH 2016: Statiscal and operational design

Reference period

Sampledesign

Unit of observation

2016Probabilistic

model*

Thehousehold

and themembers

2 400interviewersand heads of interviewers

81 515 households

August to november

2016

• National• Federal

entity**• Urban• Rural

Field workstaff

Nationalsample size

Gatheringperiod

Geographiccoverage

*By stratified clusters in two stages**Urban: Localities of 2 500 and more inhabitants, Rural: Localities less than 2 thousand 500 inhabitants

ENIGH 2016: Total current income quarterly

► Main sources of income:

Work income

Income from transfers

Estimated rent value of ownhome

Income from assets

Others currents income

64.3%15.6%

11.3% 8.8% 0.1%

SOURCE: INEGI. National Survey of Household Income and Expenditures 2016.

ENIGH 2016: Average quarterly current income per deciles

DECILES PERHOUSEHOLDS

ENIGH 2016(USD)

National 2 481

I 436

II 758

III 1 009

IV 1 256

V 1 537

VI 1 858

VII 2 263

VIII 2 847

IX 3 842

X 9 006SOURCE: INEGI. National Survey of Household Income and Expenditures 2016.

• The households of the first decil had an averageincome of 436 dollars:

• Represents 4.84 dollars per day

• And approximately 1.97 dollars a day per recipiet

• For tenth-decile households, this average incomewas 9,006 dollars:

• Represents 100.06 dollars per day

• Implies almost 40.84 dollars a day per recipiet

ENIGH 2016: Total current expenditure quarterly by big items of expenditure

► The estimated of total current expenditure quarterly in ENIGH 2016 was 942 billion pesos:

Beverages and food

Transportation and communications

Education and recreation

Housing and services

Personal care

Cleaning and care of the house

Dress and footwear

Expenditure Transfers

Health

35.2%

19.3%12.4%

9.5%

7.4%

5.9% 4.6%2.9% 2.7%

Food and beverages: Food, beverages and tobacco. Transportation and communications: Transportation; acquisition, maintenance, accessories and services for vehicles;communications. Dress and footwear: Dress and footwear. Housing and services: Housing and conservation services, electric energy and fuels. Cleaning and care of house: Articlesand services for cleaning, home care, household goods and furniture, glassware, household utensils and whites. Health: Health care. Education and recreation: Education services,educational articles, recreational items and other entertainment expenses. Personal care: Personal care, accessories and personal effects and other miscellaneous expenses.Expenditure Transfers: Expenditure Transfers .


ENIGH 2016: Average quarterly current income by household by urban-rural federative entity (USD)


4 854

3 785

3 550

3 421

3 374

3 143

3 109

2 931

2 843

2 833

2 785

2 784

2 708

2 706

2 649

2 648

2 628

2 582

2 466

2 409

2 398

2 393

2 386

2 354

2 320

2 121

2 120

2 099

1 997

1 887

1 884

1 685

1 683

1 765

1 694

1 791

1 941

1 617

2 234

2 388

1 881

1 847

1 535

1 387

1 894

1 480

1 809

1 743

1 475

1 531

1 568

1 346

1 570

1 484

1 448

1 283

1 717

1 541

1 227

1 291

1 183

1 351

1 536

1 085

1 046

753

Nuevo León

Ciudad de México

Guanajuato

Querétaro

Sonora

Baja California

Baja California Sur

Jalisco

Sinaloa

Quintana Roo

Nacional

Aguascalientes

Tamaulipas

Chihuahua

Colima

Campeche

Nayarit

Coahuila de Zaragoza

San Luis Potosí

México

Yucatán

Tabasco

Zacatecas

Durango

Morelos

Puebla

Hidalgo

Veracruz de Ignacio de la Llave

Michoacán de Ocampo

Tlaxcala

Oaxaca

Guerrero

Chiapas

Urban Rural

22

FEDERATIVE ENTITIES WITH HIGHER AND LOWER AVERAGE QUARTERLY CURRENT INCOME BY URBAN – RURAL HOUSEHOLD (USD)

ENIGH 2016: Average quarterly current income by household by selected federative entities


4 854

3 7853 550

3 421 3 374

1 997 1 887 1 8841 685 1 6831 765 1 694 1 791

1 941

1 6171 351

1 536

1 085 1 046753

Nuevo León Ciudad deMéxico

Guanajuato Querétaro Sonora Michoacán deOcampo

Tlaxcala Oaxaca Guerrero Chiapas

Entities with higher income Entities with lower income

Urban Rural

23

ENIGH 2016: Distribution of expenditure (total) by selected federative entities

Ciudad de México

32%

17%13%

13%

7% 6%

4%4% 3%

Chiapas

Nuevo León

29%

24%15%

10%

8%

6%4% 2% 2%

Oaxaca

41%

16%

11%

8%

7%

7%5% 3% 2%

45%

16%

9%

7%

6%6%

5% 3% 2%

Beverages and food

Transportation and communications

Education and recreation

Housing and services

Personal care

Cleaning and care of the house

Dress and footwear

Expenditure Transfers

Health


At INEGI´s website: www.inegi.org.mx all products related to ENIGH 2016 are available in

the next link:

http://www.beta.inegi.org.mx/proyectos/enchogares/regulares/enigh/nc/2016/default.html

• Questionnaires

• Methodological documents

• Topics, categories and variables.

• Additions and modifications.

• Sampling design.

• Data validation criteria.

• Field work reports.

• Main results

• Basic tabulations.

• Microdata files

• Getting to know the databases.

Access to ENIGH 2016 data

http://www.inegi.org.mx/

http://www.beta.inegi.org.mx/proyectos/enchogares/regulares/enigh/nc/2016/default.html

Documents

The Socioeconomic Conditions Module of the …3.0 57.4 2.8 52.3 Access to food1.4 27.5 1.0 19.4 Nuevo León Main indicators of deprivation 2014 2016 Million people % Million people