In this introduction, the authors do three things. They first introduce the puzzle and relate it to existing interpretations from market reformists and their critics, arguing that both sets of views are inadequate. The authors then offer an alternative interpretation: that entrenched inequities...

Over the last three decades, Total Factor Productivity growth in Latin America has disappointed and informality persisted. To shed light on this outcome, we exploit a unique database (by Latin American standards) for Mexico, a country where manufacturing exports grew from 7 to 33 per cent of...

Over the last two decades, Mexico has experienced macroeconomic stability, an open trade regime, and substantial progress in education. Yet average workers' earnings have stagnated, and earnings of those with higher schooling have fallen, compressing the earnings distribution and lowering the...