Abstract

OSORIO NOVELA, Germán; SAAVEDRA LEYVA, Rafael Eduardo  and  LIBRADO GONZALEZ, Moisés. Effects of self-employment on types of poverty in Mexico. Inv. Econ [online]. 2025, vol.84, n.332, pp.140-169.  Epub Oct 27, 2025. ISSN 0185-1667.  https://doi.org/10.22201/fe.01851667p.2025.332.89399.

The purpose of this research is to measure the effects of self-employment in poverty conditions in Mexico’s federal entities from 2008 to 2020. Following the assumption, that self-employment is, among other things, a mechanism used by people with difficulties supporting themselves with market wages. A panel data model as a function of self-employment is developed for three types of poverty: Simple, moderate and extreme. Findings show a differentiated impact according to the different poverty levels, where simple level has the greatest effect, followed by moderate level and finally extreme level. Self-employment income shows statistical significance in most estimates, except in the estimate of extreme poverty during the period with economic instability.

Keywords : Poverty; self-employment; entrepreneurship; economic development.

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