Household Incomes Rise as Mexico Narrows Income Inequality Gap

Household incomes steadily increased between 2020 and 2024, which was accompanied by a significant reduction in income inequality, reports Mexico’s National Institute of Statistics and Geography (INEGI). The data highlights rising earnings and a narrowing gap between the country’s wealthiest and poorest families.

Marath Bolaños, Minister of Labor and Social Welfare, attributes the advances to the economic policies of the current administration. “The policy of Mexican humanism continues to deliver results by placing the well-being of the poor first,” says Bolaños.

INEGI’s 2024 National Survey of Household Income and Expenditure (ENIGH) shows that the average monthly household income rose to MX$25,955 (US$1,372), a 10.6% real increase compared to 2022. Labor income remains the largest source, accounting for 65.6% of total household earnings, or MX$17,033 (about US$900) per month. This marks a sustained recovery trend that began in 2020 after economic disruptions earlier in the decade.

Income inequality has seen notable improvement, report STPS. The ratio between the top 10% and bottom 10% of households narrowed from 21 times in 2016 to 14 times in 2024. The share of national income received by the poorest decile increased from 1.8% in 2016 to 2.2% in 2024, while the richest decile’s share decreased from 36.4% to 30.3% over the same period. These shifts indicate progress in income redistribution across the population, report STPS. 

Despite these gains, there are ongoing challenges including persistent gender wage gaps, limited employment access for people with disabilities, and exclusion of indigenous populations, reports Bolaños.