This paper explores the role of the local context on the effectiveness of policy interventions in reducing poverty through non-agricultural rural employment (NARE). NARE is negatively associated to poverty in Mexico. Manufacturing employment is more poverty-reducing than services in semi urban municipalities. In turn, services employment matters more in rural than in semi urban areas. Factors associated to pro-poor NARE are low income inequality, dynamic agriculture, and government expenditures. Policy interventions in education and roads are poverty-reducing through manufacturing employment in semi urban municipalities and through services employment in all municipalities