This paper develops a model of ownership based on incomplete contracts, specific investments, and risk and tests the model using data on industrial subcontracting in Mexico. The choice of ownership structure involves a trade-off between minimizing holdup risk and spreading natural risk....

In this paper, we examine net emigration from Mexico over the period 1960 to 2000. The data are consistent with labor supply shocks having made a substantial contribution to Mexican emigration, accounting for two-fifths of Mexican labor flows to the United States over the last two decades of the...