| Summary: | We use microsimulation to estimate the short-term distributional consequences of the COVID-19 pandemic in Mexico. Although the potential increase in poverty is significant, we find that compared to their pre-shock income, those who lost the most are the moderate poor and the vulnerable to poverty. We find that the impact on poverty is more severe for urban households. Poverty increases less for rural households and the indigenous population. Compared to Argentina, Brazil, and Colombia, Mexico stands out because the government did not introduce additional transfers to mitigate the impact of the pandemic on living standards.
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