Volume 43, Number 171,
October-December 2012
Maquiladora Factories and Household
Income in Yucatan
Javier Becerril, Rafael Ortiz and Lilian Albornoz
Calculating Poverty and Inequality Profiles for the chah

Estimating the profiles of food poverty in the chah (which is defined as the proportion of homes whose spending7 per person is lower than necessary to cover basic food needs) indicates that food poverty represented 30% of rural households in 2009. This percentage is very close to the figure for all of rural Mexico in 2009: 31.8%. In 2009, this percentage should be slightly higher, if taking into account that it grew due to the effects of the international crisis.

Now, to measure the severity of poverty, it is necessary to calculate the Foster, Greer and Thorbecke (fgt) indices (1984), which make it possible to measure the following: incidence (α0 = proportion of poor homes in the study population), extent or intensity (α1 = average gap between income and spending in households in conditions of poverty and the poverty line) and severity (α2 = proportional gap between the poor). Table 1 shows the results for the monetary line of food poverty.

To calculate the monetary line of poverty the average cost of the food basket and non-food basket was estimated and updated using the official methodology to measure poverty in Mexico, proposed by the Technical Committee to Measure Poverty (ctmp in Spanish) in 2002, which defines three alternative measures of the incidence of poverty: 1) food poverty (line 1), for the population whose per capita monthly income is not enough to purchase the basic food basket; 2) capacity poverty (line 2), or the population whose per capita monthly income is not enough to purchase the basic food basket and, moreover, to satisfy necessary spending on health and education and 3) income poverty (line 3), or the population whose per capita monthly income is not enough to satisfy spending on food, health, education, nor does it cover housing, clothes or transportation.

Additionally, to include the demographic composition of households in per capita terms, the size of the household was adjusted using equivalent adult scales. The size of the household in equivalent adult units was built using different weights for the age and gender groups, in accordance with the definition provide by the National Nutrition Institute (Skoufias, 2005). Finally the food and non-food basket prices were updated using the national consumer price index (Bank of Mexico, 2009), and gave a monthly cost per person in rural zones as follows: for Line 1, food poverty, mx$756.55, for Line 2, capacity poverty, mx 1,378.04 and for Line 3, income poverty, mx1,711.64, all as of June 2010.

Likewise, inequality in the chah is low because the Gini coefficient8 calculated with data from the mentioned survey is 0.35, while according to calculations from coneval, the inequality coefficient for the state of Yucatán was 0.49 in 2008 (coneval, 2011).

7 Spending may be the best indicator of the extent to which households satisfy their needs, under the assumption that they have access to mechanisms that allow them to stabilize consumption in periods when income is highly unstable (Yúnez et al., 2009).

8 The Gini calculation was done using the stata® module “fastgini” Sajai (2007).

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PROBLEMAS DEL DESARROLLO. REVISTA LATINOAMERICANA DE ECONOMÍA, Volume 49, Number 194 July-September 2018 is a quarterly publication by the Universidad Nacional Autónoma de México, Ciudad Universitaria, Coyoacán, CP 04510, México, D.F. by Instituto de Investigaciones Económicas, Circuito Mario de la Cueva, Ciudad Universitaria, Coyoacán,
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