Research conducted in Mexico during the first phase of the Research Facility on Inequalities has shown low wealth sharing and limited social mobility. Indeed, empirical evidence shows that 70 per cent of Mexicans born in the lowest quintile will remain in poverty, while 52 per cent of those born in the highest quintile will remain in this quintile throughout their lives. The preliminary studies carried out in the context of the Facility also show high levels of inequality and an overestimation of the tax burden in terms of income tax.
Research and consultations with partner research centres and local authorities have identified two specific areas of intervention to effectively address inequality: labour policies, specifically the care economy, and the redistributive impact of environmental policies. In the framework of the Extension of the EU-AFD Research Facility on Inequalities (RFI), the program activities in Mexico will therefore be structured across two pillars: enhancing the role that the care economy can play in reducing inequalities and analyzing the distributional impact of environmental taxation.