Historic Decline in Inequality: Mexico has recorded its most equitable income distribution in decades, according to the National Institute of Statistics and Geography (INEGI). The institute’s newly released 2024 National Household Income and Expenditure Survey (ENIGH) reveals that Mexico ended 2024 with the lowest level of income inequality since records began in 1984. The data show the country’s Gini coefficient – a standard inequality measure – fell to 0.391 in 2024. (A Gini of 0 represents perfect equality, and 1 total inequality.) This is a significant improvement from a Gini of 0.426 in 2018 and 0.481 at the start of the 21st century. By comparison, the last time inequality was this low, Ronald Reagan was U.S. president and Miguel de la Madrid led Mexico amid a debt crisis.
Poor Households’ Incomes Surge
INEGI attributes the inequality reduction largely to faster income growth among the poorest households relative to the richest. Over the six-year period of 2018 to 2024 (essentially the term of President Andrés Manuel López Obrador, which ended late 2024), the average quarterly income of households in the bottom 10% (decil 1) jumped 35.9% (in real terms). In contrast, the average income of the top 10% richest households rose only 4.2% in that span. This disproportionate gain for the poor markedly narrowed the gap between rich and poor.
By the end of 2024, the bottom decile’s households earned about 16,800 pesos per quarter (roughly $940), equivalent to 5,600 pesos per month. Meanwhile, the top decile averaged 236,000 pesos per quarter (around $13,200, or 86,000 pesos per month). While the rich still earn over 14 times more than the poorest on average, that ratio used to be above 20x in 2018 and even higher in earlier decades.
INEGI reported that overall mean household income hit 77,864 pesos per quarter in 2024 (about 25,955 pesos per month) – a 15.7% increase from 2018. Even compared to 2020, a pandemic recession year, incomes were up 22.8% by 2024. Two-thirds of family incomes came from work earnings (wages, salaries, etc.), and about 18% from transfers like government stipends and remittances. This suggests policy interventions and wage hikes both played a role in improving living standards.
Drivers of Change – Social Programs and Wages
The report highlights that social welfare programs and improved labor incomes were key factors in this inequality decline. During 2018–2024, Mexico’s federal government substantially expanded cash transfer programs (such as scholarships, pensions for seniors, and stipends for youth trainees). These transfers boosted the income share of the poor more than the rich. At the same time, real wages for low-income workers rose due in part to aggressive minimum wage increases. The daily minimum wage more than doubled nominally from 2018 to 2024, benefiting millions at the bottom of the distribution. Formal employment recovery after the COVID-19 shock also lifted labor earnings broadly.
INEGI’s data show that by 2024, remuneration from work constituted 67.7% of household income on average, while government transfers (and remittances from abroad) made up 17.7%. The reliance on wages underscores that a tight labor market and rising pay – especially in manufacturing and construction – helped many families. At the same time, programs like “Bienestar” cash payments ensured even those without steady jobs saw support. The poorest states (Chiapas, Guerrero, Oaxaca) remain far behind wealthier ones (Nuevo León, Mexico City), but even those poorer states saw solid income growth, reducing regional inequality somewhat.
Not There Yet – Remaining Gaps
Despite this progress, INEGI cautions that “large inequalities persist.” A Gini of 0.391, while low for Mexico, still signals significant disparity. The top decile’s income is many times the bottom’s, and gender gaps are notable – the survey found women’s average income is 34% lower than men’s (women averaged 23,714 pesos quarterly vs. men’s 36,047 pesos). That disparity reflects factors like women being more often in unpaid or informal work and lingering discrimination.
Geographically, the 2024 ENIGH confirmed wide differences: Nuevo León households earned an average quarterly income of 117,000 pesos (highest), versus Chiapas at just 41,000 pesos (lowest). Inequality within states also varies – urban centers have more income stratification than rural areas. Additionally, while poverty rates fell, a large absolute number of Mexicans remain in poverty or vulnerability, and middle-class incomes are modest.
Economists note that part of the measured inequality drop could be cyclical: lower-income workers suffered in 2020’s pandemic but then saw faster percentage rebounds. The durability of the trend will depend on maintaining wage gains and social spending, and on economic growth benefitting lower-skilled workers. There’s also debate about data accuracy, as very high incomes are often underreported in surveys, which can make inequality appear lower than it truly is. INEGI’s robust methodology, however, has been consistent over time and the trend is corroborated by other sources like CONEVAL’s poverty reports.
Political and Social Impact
The finding of historically low inequality is a milestone for Mexico’s “Fourth Transformation” government, which made reducing the rich-poor gap a central aim. President Sheinbaum celebrated the news, attributing it to “social welfare policies and fair wage increases.” She has vowed to continue these efforts, announcing recently that social program budgets will be maintained or expanded even amid fiscal pressures. Observers point out that declining inequality can help social cohesion and stability, though high crime and other issues persist independent of income stats.
On the ground, the effects mean many poor families have slightly better spending power than a few years ago – more kids finishing high school, more refrigerators and smartphones in rural homes, etc. Businesses in consumer goods have noticed rising sales in lower-tier markets as a result. Yet the middle class remains squeezed by inflation, and the wealthy still command a disproportionate share of wealth (assets like property and stocks are not fully captured in income surveys).
Still, compared to the painful neoliberal adjustment years of the 1990s – when inequality spiked (Gini reached ~0.54 in 1996 amid a peso crisis) – Mexico has made notable strides in sharing growth. If the trend can be sustained, it bodes well for reducing poverty further and creating a more inclusive economy. INEGI plans another survey in two years (2026) which will show if this was a one-time improvement or part of a continuing equalization in Mexico’s socio-economic landscape.
