Household Food Expenditures and Dietary Diversity in Mexico: The Role of Income, Urbanization, and Region

Abstract This study examines how income, location and regional disparities are associated with food expenditure and dietary diversity in Mexico. Using household expenditure data and an entropy-based approach, we confirm Engel’s Law: food budget shares decline with income but do so unevenly across urban–rural areas and regions. Consistent with the Engel curve for variety, wealthier households diversify their diets, spending more on high-value foods, while poorer rural households remain reliant on staples. Quantile regression shows that income has the strongest positive effect on diversity at lower quantiles, with diminishing returns at higher levels. Household characteristics, education, region, and food prices further influence diet. The results thereby underscore the need for income-sensitive, regionally targeted nutrition policies.