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Labor Productivity Convergence in Mexico

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  • Francisco A. Castellanos-Sosa

Abstract

Mexico exhibits the lowest labor productivity of all OECD countries and main groups of nations. However, little is known about its behavior at the sector-state level, or whether it was affected by the global financial crisis (GFC). Therefore, this paper explores the extent to which the GFC affected the convergence—catch-up—process of seventeen Mexican economic sectors in the 1999–2014 period. Moreover, this paper identifies the regions that were more affected by the GFC and analyzes whether the sectoral composition is driving the states’ labor productivity convergence patterns. Results suggest that the GFC pushed 13 economic sectors toward convergence and changed the direction of the pre-GFC catch-up trend in 15; that the labor productivity convergence pattern barely changed in the north of Mexico in the short term, and that the biggest changes occurred in the center and south regions; and that states’ sectoral composition drives their labor productivity patterns.

Suggested Citation

  • Francisco A. Castellanos-Sosa, 2020. "Labor Productivity Convergence in Mexico," International Journal of Political Economy, Taylor & Francis Journals, vol. 49(3), pages 243-260, August.
    • Handle: RePEc:mes:ijpoec:v:49:y:2020:i:3:p:243-260
    DOI: 10.1080/08911916.2020.1824733
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    Cited by:

    1. Castellanos-Sosa, Francisco A. & Cabral, René & Mollick, André Varella, 2022. "Energy reform and energy consumption convergence in Mexico: A spatial approach," Structural Change and Economic Dynamics, Elsevier, vol. 61(C), pages 336-350.
    2. Mustafa Zuhal, 2023. "Technological Convergence in Emerging Economies: An Investigation with Unit Root Tests," Journal of Economic Policy Researches, Istanbul University, Faculty of Economics, vol. 10(2), pages 567-586, July.

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