The study analyzed poverty as a function of households’ demographic composition using a longitudinal random sample of 4268 urban and rural households that were followed-up from 2005/6 to 2009/12 in Mexico to estimate short-term changes in living conditions. Well-being was measured as the dwelling unit’s number of rooms, water source, sanitary services, garbage disposal, and fuel. Mobility paths included not poor–not poor, poor–poor, not poor–poor, and poor–not poor. Independent variables included household composition, family characteristics, residential changes, schooling, and occupation. Female headship and older adults negatively impacted poverty, whereas economic dependents may be negatively or positively associated. Fertility incentives for low-income populations are not advisable. Working-age adults contribute only if income-generating opportunities exist locally.