Rethinking the construction of welfare in Mexico: Going beyond the economic measures

This study utilized a multidimensional measure of social welfare composed of 26 social indicators integrated in nine categories: education, employment and social protection, income, health, housing conditions, subjective wellbeing, social capital, use of technology, and culture and leisure to help understand social welfare in Mexico. We also compared the integrated measure with the Human Development Index. Estimation was performed using the DP2 method. Our analysis indicated that the health and housing conditions categories contributed the most to social welfare across the 32 Mexican States. In relation to the indicators, income and trust in other people were associated with welfare. Further, results on the welfare ranking of Mexican states revealed variations between the two indices (DP2 and the HDI). Specifically, only four states occupied the same position on both indices, ten recorded different positions on DP2 moving up or down from their levels of social welfare. Implications of observed correlations are presented.