Mexico

Did You Know?

Population
106.7
mil.
Visitors per year
22.6
mil.
Renewable energy
9.52
%

How’s Life?

Mexico has made tremendous progress over the last decade in terms of improving the quality of life of its citizens, especially in the areas of education, health and jobs. Notwithstanding, Mexico ranks low in a large number of topics relative to most other countries in the Better Life Index.

Money, while it cannot buy happiness, is an important means to achieving higher living standards. In Mexico, the average household earned 12 182 USD in 2008, less than the OECD average .

In terms of employment, nearly 60% of people aged 15 to 64 in Mexico have a paid job. People in Mexico work 1857 hours a year, more than in other OECD countries. 57% of mothers are employed after their children begin school, suggesting that women encounter difficulties when balancing family and career.

Having a good education is an important requisite to finding a job. In Mexico, 34% of adults aged 25 to 64 have earned the equivalent of a high-school diploma, much lower than the OECD average. As to the quality of its educational system, the average student scored 425 out of 600 in reading ability according to the latest PISA student-assessment programme, also lower than the OECD average.

In terms of health, life expectancy at birth in Mexico is 75 years, or four years below the OECD average. The level of atmospheric PM10 – tiny air pollutant particles small enough to enter and cause damage to the lungs – is 33 micrograms per cubic meter, and is much higher than levels found in most OECD countries.

Concerning the public sphere, there is a strong sense of community and moderate levels of civic participation in Mexico. 87% of people believe that they know someone they could rely on in a time of need, near the OECD average of 91%. Voter turnout, a measure of public trust in government and of citizens' participation in the political process, was 59% during recent elections; this figure is lower than the OECD average of 72%. In regards to crime, 15% of people reported falling victim to assault over the previous 12 months.

When asked, 66% of people in Mexico said they were satisfied with their life, above the OECD average of 59%.

These findings are based on data from 2008 or later.

Topics

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Mexico in Detail

Housing

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Key Findings

In many OECD countries, home ownership is an important dimension of individual well-being. It protects owners from fluctuations in rents and ensures families a stable and secure shelter. Additionally, the value of a property represents a major source of wealth for households. Over 78% of occupied dwellings in Mexico are inhabited by the owners themselves, higher than the OECD-23 average of 67%.

In addition to measuring home ownership rates, it is also important to examine living conditions, such as the average number of rooms shared per person and whether households have access to basic facilities.

The number of rooms in a dwelling, divided by the number of persons living there, indicates whether residents are living in crowded conditions. Overcrowded housing may have a negative impact on physical and mental health, relations with others and the development of children. In addition, dense living conditions are often a sign of inadequate water and sewage supply. In Mexico, the average home contains an estimated 0.9 rooms per person, less than the OECD average of 1.6 rooms per person. In terms of basic facilities, 6.6% of dwellings in Mexico lack private access to indoor flushing toilets, much more than the OECD average of 2.8% dwellings.

Data for rooms per person in Mexico rely on OECD estimates. These figures will be updated as official information becomes available.

Indicators

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Income

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Key Findings

While money may not buy happiness, it is an important means to achieving higher living standards and thus greater well-being. Higher economic wealth may also improve access to quality education, healthcare and housing.

Household net-adjusted disposable income is the amount of money that a household earns each year after tax. It represents the money available to a household for spending on goods or services. In Mexico, the average household net-adjusted disposable income is 12 182 USD a year, lower than the OECD average of 22 284 USD.

Household financial wealth is the total value of a household’s financial worth. In Mexico, the average household wealth is estimated at 11 590 USD, lower than the OECD average of 36 808 USD. While the ideal measure of household wealth should include real assets (e.g. land and dwellings), such information is currently available for only a small number of OECD countries.

Indicators

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Jobs

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Key Findings

Having a job brings many important benefits, including: providing a source of income, improving social inclusion, fulfilling one’s own aspirations, building self-esteem and developing skills and competencies. In Mexico, nearly 60% of the working-age population aged 15 to 64 has a paid job. This figure is lower than the OECD employment average of 65%. Eight out of ten men in Mexico are working, slightly above the OECD average of three out of four. Yet less than half of Mexican women have jobs, compared to an average of 60% in the OECD area.

Unemployed persons are defined as those who are not currently working but are willing to do so and actively searching for work. Long-term unemployment can have a large negative effect on feelings of well-being and self-worth and result in a loss of skills, further reducing employability. In Mexico, the percentage of the labour force that has been unemployed for a year or longer is currently at 0.13%, much lower than the OECD average and one of the lowest rates.

Indicators

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Community

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Key Findings

Humans are social creatures. The frequency of our contact with others and the quality of our personal relationships are thus crucial determinants of our well-being.

A strong social network, or community, can provide emotional support during both good and bad times as well as provide access to jobs, services and other material opportunities. In Mexico, 87% of people believe that they know someone they could rely on in a time of need, slightly lower than the OECD average. Nearly 41% reported having helped a stranger in the last month, also close to the average.

A weak social network can result in limited economic opportunities, a lack of contact with others, and eventually, feelings of isolation. Socially isolated individuals face difficulties integrating into society as a contributing member and fulfilling personal aspirations. Nearly 14% of people in Mexico reported ‘rarely’ or ‘never’ spending time with friends, colleagues or others in social settings; this figure is much higher than in most OECD countries.

Indicators

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Education

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Key Findings

A well-educated and well-trained population is essential for a country’s social and economic well-being. Education plays a key role in providing individuals with the knowledge, skills and competences needed to participate effectively in society and in the economy. Most concretely, having a good education greatly improves the likelihood of finding a job and earning enough money. Lifetime earnings also increase with each level of education.

Following a decline in manual labour over previous decades, employers now favour a more educated labour force. High-school graduation rates therefore provide a good indication of whether a country is preparing its students to meet the minimum requirements of the job market.

In Mexico, 34% of adults aged 25-64 have earned the equivalent of a high-school degree, much lower than the OECD average of 73%. Among younger people – a better indicator of Mexico’s future – only 40% of 25-34 year-olds have earned the equivalent of a high-school degree, just half the OECD average of 80%. This makes Mexico one of the lowest ranking countries in terms of preparing its young adults with high-school degrees.

Nonetheless, the Mexican educational system has grown rapidly in the last fifty years, from three million students to more than 30 million. Today, nearly all children between the ages of 5 and 14 are in school. There has also been progress in ensuring that young people finish school, with rates increasing from 33% in 2000 to 42% in 2005. This progress has been achieved despite tight budgets and a rapidly growing school-age population, including 15% who live on less than 2 USD per day.

But graduation rates, while important, speak little to the quality of education received. The OECD’s Programme for International Student Assessment (PISA) reviews the extent to which students have acquired some of the knowledge and skills that are essential for full participation in modern societies. In 2009, PISA focused on examining students’ reading ability, as research shows that reading skills are more reliable predictors of economic and social well-being than the number of years spent in school.

The average student in Mexico scored 425 out of 600 in reading literacy, much lower than the OECD average of 493 and the lowest rate in the OECD. Further findings show that a large number of students lack necessary skills and knowledge. 50% of 15-year-olds were below the basic skills level (PISA level 2) when the OECD average was 19.2%. Only 3% of students scored at the top levels (5 and 6), which require students to consistently identify, explain and apply scientific knowledge in a variety of complex everyday situations. The percentage of students scoring at these levels was three times higher in other OECD countries.

Mexico’s relatively poor PISA scores and low secondary school enrolment are strongly related to socio-economic backgrounds. Less than 50% of children from households in the bottom ten percent of the income distribution attend secondary school, in contrast to more than 80% in the top ten percent.

Indicators

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Environment

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Key Findings

Outdoor air pollution is one important environmental issue that directly affects the quality of peoples’ lives. Air pollution in urban centres, often caused by transport and the use of small-scale burning of wood or coal, is linked to a range of health problems, from minor eye irritation to upper respiratory symptoms in the short-term and chronic respiratory diseases such as asthma, cardiovascular diseases and lung cancer in the long-term. Children and the elderly may be particularly vulnerable.

PM10 – tiny particulate matter small enough to be inhaled into the deepest part of the lung – is monitored in OECD countries because it can harm human health and reduce life expectancy. In Mexico, PM10 levels are 32.7 micrograms per cubic meter, much higher than the OECD average of 22 micrograms per cubic meter.

Indicators

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Governance

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Key Findings

A cohesive society is one where citizens have a high degree of confidence in their governmental institutions and public administration. Only 38% of people in Mexico say they trust their political institutions, much lower than the OECD average of 56% and the lowest rate in the OECD area. High voter turnout is another measure of public trust in government and of citizens' participation in the political process. In the most recent elections for which data is available, voter turnout in Mexico was 59% of those registered. This figure is lower than the OECD average of 72%. However, Mexico is one of only four OECD countries to have seen increases in voter turnout in the last generation.

Ensuring that government decision making is not compromised by conflicts of interest is key to maintaining trust in government. Transparency is therefore essential to hold government to account and to maintain confidence in public institutions.

Freedom of information laws (FOI) allows the possibility for individuals to access undisclosed information. For such policies to be successful, the public should have a clear understanding of their rights under the law, should be able to file requests with ease and should be protected against any possible retaliation. People in Mexico can file a request for information either in writing, online, or in person – thus greatly facilitating the FOI process. Mexico is one of six OECD countries to protect individuals from any possible retaliation, but does not allow for anonymous requests.

Despite substantial progress, problems with the rule of law remain Mexico’s greatest obstacle to growth. Using a comparison of Mexico with the ten fastest growing countries shows the rule of law weakening between 1996 and 2007 in both absolute and relative terms. The enforceability of contracts, in particular, is weak.

Indicators

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Health

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Key Findings

Most OECD countries have enjoyed large gains in life expectancy over the past decades, thanks to improvements in living conditions, public health interventions and progress in medical care. In particular, Mexico has seen dramatic improvements in life expectancy (of more than 17 years) and a steady decline in infant mortality rates. Nonetheless, at 75.1 years in 2008, life expectancy remains four years lower than the OECD average and the fourth lowest in the OECD.

Higher life expectancy is generally associated with higher healthcare spending per person, although many other factors have an impact on life expectancy (such as living standards, lifestyles, education and environmental factors). Total health spending accounted for 5.9% of GDP in Mexico in 2008, the lowest share among OECD countries and three percentage points lower than the average of 9.0% in OECD countries. Although public spending on health in Mexico has more than doubled since 1995, it remains low by international standards. Additionally, Mexico’s health indicators lag behind those of most OECD countries.

Throughout the OECD, excessive weight gain remains an important risk factor for many chronic diseases. Obesity rates have increased in recent decades in all OECD countries, although with 30% of the adult Mexican population reported as obese, they are second only to the US. 10% more women than men are obese in Mexico, more than the OECD average of 4%. Obesity’s growing prevalence foreshadows health problems (such as diabetes, cardiovascular diseases and asthma) and higher health care costs in the future.

When asked, "How is your health in general?", 65.5% of people in Mexico reported to be in good health, slightly lower than the OECD average of 69%. Despite the subjective nature of this question, the answers have been found to be a good predictor of people’s future health care use.

Better Policies for Better Lives

Improved health coverage with Seguro Popular

One third of the population, mostly in low-income groups, has no health insurance. The uninsured are less likely to receive appropriate preventive care and timely treatment when sick, which results in higher spending, often out-of-pocket, and worse outcomes. The government is aiming for universal health coverage in 2011 by further expanding Seguro Popular, a program that provides financial assistance to low-income families and has been successful in increasing coverage by about 25% of the population since 2004.

Indicators

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Life Satisfaction

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Key Findings

Happiness can be measured in terms of life satisfaction, the presence of positive experiences and feelings, and the absence of negative experiences and feelings. Such measures, while subjective, are a useful complement to compare the quality of life across countries.

For Mexico, like throughout much of the OECD, self-reported life satisfaction has been rising over the last decade. In recent polling, 66% were satisfied with their life and 74% believe that their life will be satisfying five years later.

78% of people in Mexico reported having more positive experiences in an average day (feelings of rest, pride in accomplishment, enjoyment, etc) than negative ones (pain, worry, sadness, boredom, etc). This figure is higher than the OECD average of 72%, and makes Mexico one of the happiest countries in the OECD.

Indicators

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Safety

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Key Findings

Personal security is a core element for the well-being of individuals, and largely reflects the risks of people being physically assaulted or falling victim to other types of crime. Across the OECD, victimisation rates for conventional crime (theft, robbery, assault) have declined in the new millennium. In Mexico, 15% of people reported falling victim to assault over the previous 12 months, much higher than the OECD average of 4% and the highest rate in the OECD. 34% of people feel unsafe on the street after dark, higher than the OECD average of 26%.

The homicide rate (the number of murders per 100,000 inhabitants) is a more reliable measure of a country’s safety level because, unlike other crimes, murders are usually always reported to the police. According to the latest OECD data, Mexico’s homicide rate has increased from 7 in 2002 to 11.6, much higher than the OECD average and the highest in the OECD.

Indicators

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Work-Life Balance

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Key Findings

Finding a suitable balance between work and life is a challenge for all workers, especially working parents. Some couples would like to have (more) children, but do not see how they could afford to stop working. Other parents are happy with the number of children in their family, but would like to work more. This is a challenge to governments because if parents cannot achieve their desired work/life balance, not only is their welfare lowered but so is development in the country.

In Mexico, an estimated 57% of mothers are employed after their children begin school; this figure is close to the OECD average of 66% and suggests that mothers are encounter difficulties when balancing family and career.

Another important aspect of work-life balance is the amount of time a person spends at work. Evidence suggests that long work hours may impair personal health, jeopardize safety and increase stress. People in Mexico work 1857 hours a year, higher than the OECD average of 1739 hours.

The more people work, the less time they have to spend on other activities, such as time with others or leisure. The amount and quality of leisure time is important for people’s overall well-being, and can bring additional physical and mental health benefits. People in Mexico devote 57% of their day, or 13.6 hours, to personal care (eating, sleeping, etc.) and leisure (socializing with friends and family, hobbies, games, computer and television use, etc.) – lower than the OECD average.

Data for employment rate of women with children in Mexico rely on OECD estimates. These figures will be updated as official information becomes available.

Better Policies for Better Lives

More public support to families with children is needed

Mexico could strengthen its policies to enhance the well-being of families and children. Public support in family benefits and services are key for mobilising female employment, reducing poverty risks, promoting child development and improving gender equity.

Apart from Israel, Mexico has the highest child poverty rate in the OECD. More than 1 in 4 Mexican children lived in poor households in 2008 (25.8%); well above the OCED average of 1 in 8 (12.7%) children. In the early 2000s, child poverty rates fell noticeably in Mexico, in part due to an expansion of social programmes such as Oportunidades.

Child-related leave entitlements are limited. Maternity leave, although paid at 100% of last earnings, lasts just 12 weeks and only covers women in formal employment. No other form of parental leave, including for fathers, is available. Efforts to increase childcare (Programa de Estancias Infantiles para Madres Trabajadoras) and pre-school enrolment rates (by implementing compulsory pre-school education) have translated into higher participation rates. But more can be done, childcare enrolment rates among under-3’s remain considerably low (6% compared with an OECD average of 31%), and access to high quality and affordable care is central for facilitating parental employment.

Gender gaps in paid and unpaid work in Mexico are among the largest in the OECD area. Female employment rates, though modestly increasing, are the lowest in the OECD after Turkey (43% of Mexican women are in paid work compared to an OECD average of 60%). At home, Mexican women spend 4 hours per day more on unpaid work than men. Gender roles constitute a barrier to women’s and Mexico's economic opportunities.

Indicators

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