Internet access and poverty reduction: Evidence from rural and urban Mexico

Using data from Mexico's 2016 National Household Income and Expenditure Survey (ENIGH), we estimate the impact of Internet access on the multidimensional and income poverty of rural and urban Mexico. Based on a Propensity Score Matching approach, our results show that Internet access helps reduce poverty levels in Mexico. Findings also reveal differentiated effects in the two indicators accounting for greater deprivation. The impacts on reducing extreme income poverty and extreme multidimensional poverty are more significant for the rural sector than for the urban sector. The results suggest policy measures aimed at solving issues that limit Internet access for individuals and households with higher social vulnerability, thereby contributing to a reduction of the poverty levels experienced by an important segment of Mexico's population.