Between 2018 and 2024, Mexico registered a decrease in poverty, explained almost entirely by rising labor income. Only 7% of this reduction was attributable to social programs, which are President Claudia Sheinbaum’s flagship policies. This low percentage fuels the belief that Mexico’s social programs are not effective and only discourage people from working.
This idea is repeated constantly on social media and has even made its way into foreign media outlets and think tanks, most of which argue that social programs should be replaced by paid work. Former right-wing president Vicente Fox famously called recipients of social programs “lazy bums.”
This idea is, at its core, not just mistaken but deeply perverse.
That is why today’s Mexico Decoded essay will unpack this idea, explain who actually receives social benefits in Mexico, and examine what the evidence tells us about their real effects on the labor market.
