ENIGH 2024: Household Income Base Advances, but Decile Inequality Still Defines the Outlook
The 2024 National Household Income and Expenditure Survey (ENIGH), released by Mexico’s national statistics agency Inegi, confirms that the country continues to face a significant gap between households with the lowest and highest incomes, despite recent improvements at the base of the pyramid. The national average current income stood at 77,864 pesos per household per quarter, 10.6% higher than in 2022. Since 2016, there's been a cumulative 10.8% increase, though with setbacks in 2018 and 2020. The first decile—the bottom 10% earners—averaged 16,795 pesos per quarter, while the top decile reached 236,095 pesos. This difference, a factor of 14, is a stark reminder of the structural challenge posed by inequality.
At the middle of the distribution, the fifth decile reached 54,308 pesos per quarter, a 13.4% increase compared to 2022. Notably, the highest percentage increases between 2022 and 2024 were observed at the base and in the middle of the income distribution, with gains of up to 14.2%, while the top decile’s income grew by 6.4%. These changes suggest a slight narrowing of the relative gap between extremes, although the absolute gap remains wide.
Looking at sources of income, the ENIGH shows that labor income increases in importance from the lowest to the middle deciles, then loses significance in the higher ones. In the first decile, labor income accounts for 42.5% of total income; its share rises, peaking at 70.5% in the eighth decile, then decreases to 69.8% in the ninth and 62.8% in the tenth, where rents, profits, and investments become more relevant. In low-income households, transfers—including public assistance, remittances, and other support—remain a crucial supplement.
Breaking the data down by gender and age reveals persistent gaps. The average quarterly monetary income was 30,160 pesos, 11.8% more than in 2022. Men reported an average of 36,047 pesos, while women averaged 23,714—meaning that, on average, men earn 1.52 times what women do. The gap widens with age: among those 60 and older, men earn 1.8 times what women receive. The 40–49 age group had the highest incomes (38,454 pesos), while the largest absolute increase compared to 2022 was seen in the 30–39 age group. Young people aged 12 to 19 have the lowest incomes, but their 21% increase over two years suggests greater entry into paid work.
Macroeconomic conditions help explain some of these results. The labor market has shown resilience, with unemployment rates near historic lows and consecutive minimum wage hikes since 2019, boosting base-level incomes—especially in manufacturing regions in the north and the Bajío, which have benefited from investment relocations. Inflation, which peaked in 2022, eased starting in 2023, allowing for some recovery in purchasing power, though interest rates remain high and food costs continue to put pressure on household budgets in several states.
Transfers remain a vital support for many households. Social programs have expanded their reach, and remittances from abroad remain high, especially in traditionally migrant states in the west and south. However, lower deciles’ reliance on non-labor income underscores the need to further formalize the labor market, increase productivity among micro and small businesses, and expand access to social security to sustainably close income gaps.
Structural challenges persist: female labor force participation still lags behind that of men, and the unequal distribution of unpaid care work limits women’s earning potential. Regional differences put households in the south and southeast at a disadvantage compared to the industrial north, and the income composition of higher deciles—with their greater exposure to rent and capital—highlights the limited depth of savings and productive investment in the rest of the population. Policies to build human capital, expand infrastructure, improve mobility and care systems, and create a better regulatory environment for credit and competition will be key for accelerating social mobility.
Looking ahead to the coming quarters, income trends will depend on investment—including those tied to nearshoring—on inflation dynamics, and on how quickly interest rates can fall without jeopardizing stability. Potential changes to fiscal policy and the design of social programs could affect the system’s progressivity and the relative weight of different income sources. Expanding digital payments, financial inclusion, and access to formal credit for households and small businesses all present opportunities to translate nominal gains into lasting wellbeing.
In summary, ENIGH 2024 confirms progress in incomes for the base and the middle segments, but also shows that inequality by decile, gender, and region persists. The sustainability of these improvements will depend on consolidating formal employment, boosting productivity, and keeping inflation in check, while strengthening care and training policies that facilitate greater participation and higher earnings for women and young people.
