The main purpose of this article is to make a socioeconomic analysis of households of six squatter settlements of Oaxaca City, a middle-size city that lacks an important industrial base. Squatter settlements, representative of up to 40% of the total population of Oaxaca City, are an option of securing low-cost housing for poor urban inhabitants. It was found that reduction in household size, as a strategy of adaptation to economic crises, is greater than in the average households of Oaxaca City. The participation of households in the labor market still is low and strongly orientated to the informal sector. Finally, formal education of the children represents the second priority in the family expenses
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