Report on Mexican Household Income and its Implications for Sustainable Development Goals (2016-2024)

Analysis based on the National Survey of Household Income and Expenditure (ENIGH) 2024

This report analyzes data from the 2024 National Survey of Household Income and Expenditure (ENIGH), published by the National Institute of Statistics and Geography (INEGI). The findings, covering the period from 2016 to 2024, are examined through the framework of the United Nations Sustainable Development Goals (SDGs), with a particular focus on poverty, economic growth, and inequality.

Progress Towards SDG 1 (No Poverty) and SDG 8 (Decent Work and Economic Growth)

The survey indicates significant progress in areas related to SDG 1 and SDG 8, reflected in rising household incomes and the strengthening of economic drivers.

Overall Income Growth

Between the 2022 and 2024 survey periods, the average quarterly household income increased by 10.6%, reaching 77,864 pesos. This growth is a positive indicator for achieving decent living standards and economic well-being.

Key Drivers of Economic Advancement

The primary factors contributing to this income growth align with the objectives of SDG 8:

• Increases in the minimum wage.
• Expansion of formal employment opportunities.
• Strengthening of social programs, which function as a social protection floor system under SDG 1.

Analysis of SDG 10 (Reduced Inequalities)

The data reveals a trend of diminishing income inequality since 2016, a core target of SDG 10. However, significant disparities persist, indicating that further action is required.

Reduction in Income Disparity

Progress towards reducing inequality is evidenced by the following trends observed since 2016:

• The income of the poorest 10% of households increased by over 35%.
• The income of the wealthiest 10% of households decreased by 8%.

Persistent Gaps in Income Distribution

Despite progress, a substantial income gap remains between the highest and lowest economic strata. In 2024, the disparity highlights the ongoing challenge for SDG 10:

• Lowest-income households: Average quarterly income of 16,795 pesos.
• Highest-income households: Average quarterly income of 236,095 pesos, approximately 14 times greater than the lowest decile.

Challenges in Achieving SDG 5 (Gender Equality) and Balanced Regional Development

The survey underscores persistent structural inequalities related to gender and geography, which are critical focus areas for SDG 5 and SDG 10.

Gender-Based Economic Disparity

A significant gender pay gap impedes progress on SDG 5. The 2022-2024 data shows that women earned, on average, 34% less than men. This translates to a woman earning 66 pesos for every 100 pesos earned by a man.

Regional Economic Imbalances

Geographic disparities challenge the goal of inclusive development. Households in northern states like Nuevo León earn nearly three times the average income of households in southern states like Chiapas, which has historically lagged in economic indicators.

Evolving Household Dynamics and Income Composition

The report details shifts in household structure and income sources, with implications for social protection systems and long-term economic planning.

Income Sources and Social Protection Systems

The composition of household income provides insight into economic reliance and the role of social safety nets.

1. Labor Income: Remains the primary source at 66%.
2. Transfers: Constitute 18% of income. This category, which includes social programs, remittances, and scholarships, recorded the highest growth between 2016 and 2024 at 26.5%, reinforcing its importance for achieving SDG 1.

Demographic Shifts (2016-2024)

The changing composition of households points to an aging population, a trend with significant implications for healthcare (SDG 3) and social support systems.

• Household size decreased by 8.5%.
• The number of household members under 15 decreased by 24.8%.
• The number of household members aged 65 and over increased by 21.3%.
• The number of income earners per household dropped by 10.2%.

SDGs Addressed in the Article

• SDG 1: No Poverty – The article focuses on the growth of household income, especially for the poorest segments of the population, and the role of social programs, which are central to poverty reduction efforts.
• SDG 5: Gender Equality – The article explicitly highlights the persistent gender pay gap, reporting that women earn significantly less than men, which is a key issue for gender equality.
• SDG 8: Decent Work and Economic Growth – The discussion on rising income driven by minimum wage increases and the expansion of formal employment directly relates to achieving decent work and sustainable economic growth.
• SDG 10: Reduced Inequalities – A primary theme of the article is the change in income inequality. It discusses the narrowing gap between the richest and poorest, but also the remaining disparities based on income level, gender, and region.

Specific SDG Targets Identified

SDG 1: No Poverty

1. 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 showing a “substantial income increase since 2016” of over 35% for the poorest 10% of households, directly addressing poverty reduction through income growth.
2. Target 1.3: Implement nationally appropriate social protection systems and measures for all… and by 2030 achieve substantial coverage of the poor and the vulnerable. The article points to the “strengthening of social programs” and notes that “transfers,” which include these programs, are the fastest-growing source of income, increasing by 26.5% since 2016.

SDG 5: Gender Equality

1. Target 5.1: End all forms of discrimination against all women and girls everywhere. The article highlights a key area of economic discrimination by stating that “women on average earned 34% less than men,” indicating a failure to achieve equality in economic outcomes.

SDG 8: Decent Work and Economic Growth

1. Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men… and equal pay for work of equal value. The article connects income growth to “increases in the minimum wage” and “expansion of formal employment.” It also directly addresses the “equal pay” component by reporting the significant gender pay gap.

SDG 10: Reduced Inequalities

1. 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, stating that the “poorest 10% of households saw a substantial income increase since 2016 — over 35% — while earners in the top 10% saw their income drop by 8%.”
2. Target 10.2: By 2030, empower and promote the social, economic and political inclusion of all, irrespective of… sex… or economic or other status. The article details the persistence of economic exclusion through several disparities: the income gap between the highest and lowest earners (a 14-fold difference), the gender pay gap, and regional income inequality (Nuevo León vs. Chiapas).

Indicators for Measuring Progress

Indicators for SDG 1: No Poverty

• Average quarterly household income: The article provides specific figures, such as the average of 77,864 pesos and the 16,795 pesos for the lowest-income households.
• Income growth rate for the poorest households: The article states that the income for the poorest 10% of households increased by “over 35%” since 2016.
• Proportion of income from transfers: The article indicates that transfers, which include social programs, account for 18% of household income and have grown by 26.5% since 2016.

Indicators for SDG 5: Gender Equality

• Gender pay gap: The article specifies that “women on average earned 34% less than men, meaning that for every 100 pesos a man earned, a woman earned 66 pesos.”

Indicators for SDG 8: Decent Work and Economic Growth

• Drivers of income growth: The article implies progress through qualitative indicators like “increases in the minimum wage” and “expansion of formal employment.”
• Gender pay gap: The same indicator for SDG 5 (“women on average earned 34% less than men”) is a direct measure for Target 8.5’s goal of “equal pay for work of equal value.”

Indicators for SDG 10: Reduced Inequalities

• Income growth rate of the bottom decile vs. top decile: A growth of over 35% for the poorest 10% versus a drop of 8% for the richest 10%.
• Income ratio between highest and lowest deciles: The article states that the highest-income households earned “roughly 14 times more” than the lowest-income households.
• Regional income disparity: The comparison that households in “Nuevo León earning almost three times as much on average as those in Chiapas.”

Summary of SDGs, Targets, and Indicators

Source: mexiconewsdaily.com