Income inequality has significant socio-economic impacts on Mexican youths and vulnerable populations. High poverty and low productivity growth are Mexico’s key problems emanating from persistent income inequality. The productivity of youths and individuals in the lower-income groups in Mexico is at stake because of the poor allocation and redistribution of income. Lack of income equality in the country continues to harm the investment decisions of the affected individuals resulting in increased poverty levels.
The purchasing power of groups experiencing income inequality in Mexico is a concern. The salaries of these individuals are not enough to enable them to acquire basic food and provide for their families. Those affected by income inequality are living completely marginalized from future progress of socio-economic well-being. Increasing violence, drug trafficking, high levels of unemployment, and low education levels among Mexican youths are all effects of increasing income inequality in the country.