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Policies to Promote Growth and Economic Efficiency in Mexico

Author

Listed:
  • Arias-Vazquez, Francisco Javier

    () (World Bank)

  • Azuara, Oliver

    () (Inter-American Development Bank)

  • Bernal, Pedro

    () (University of Chicago)

  • Heckman, James J.

    () (University of Chicago)

  • Villarreal, Cajeme

    () (University of Chicago)

Abstract

This paper discusses the problems facing the Mexican economy. It operates under a heavy burden of monopoly and regulation. We focus on two issues that should receive more attention in discussions of Mexican policy. (1) The family is under stress in Mexico and this retards the growth of skills of workforce. (2) The informal sector is large, mostly due to the heavy burden of monopoly and regulation. We find little evidence that the introduction of social protection programs for workers outside the formal sector have promoted the growth of the informal sector.

Suggested Citation

  • Arias-Vazquez, Francisco Javier & Azuara, Oliver & Bernal, Pedro & Heckman, James J. & Villarreal, Cajeme, 2010. "Policies to Promote Growth and Economic Efficiency in Mexico," IZA Discussion Papers 4740, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp4740
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Ramos Francia Manuel & García-Verdú Santiago, 2017. "Bank Credit Allocation and Sectorial Concentration in Mexico: Some Empirical Evidence," Working Papers 2017-14, Banco de México.
    2. Azuara, Oliver & Marinescu, Ioana, 2013. "Informality and the expansion of social protection programs: Evidence from Mexico," Journal of Health Economics, Elsevier, vol. 32(5), pages 938-950.
    3. Azuara, Oliver & Marinescu, Ioana, 2011. "Informality and the expansion of social protection programs," MPRA Paper 35073, University Library of Munich, Germany.
    4. Claudia Sánchez Vela & Jorge N. Valero Gil, 2013. "Incidencia económica de las políticas fiscal y laboral mexicanas," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 28(1), pages 109-163.
    5. Richard M. Bird & Michael Smart, 2012. "Financing Social Expenditures in Developing Countries: Payroll or Value Added Taxes?," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1206, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    6. World Bank, 2013. "Toward a More Competitive Business Environment," World Bank Other Operational Studies 16581, The World Bank.
    7. repec:zbw:rwirep:0263 is not listed on IDEAS
    8. Blecker, Robert A. & Ibarra, Carlos A., 2013. "Trade liberalization and the balance of payments constraint with intermediate imports: The case of Mexico revisited," Structural Change and Economic Dynamics, Elsevier, vol. 25(C), pages 33-47.
    9. Mariana Pereira-López, 2014. "Indirect Job Creation and the Informal Sector in Mexico," Working Paper Series Sobre México 2014001, Sobre México. Temas en economía.
    10. John P. Haisken-DeNew & Maren M. Michaelsen, 2011. "Migration Magnet: The Role of Work Experience in Rural-Urban Wage Diff erentials in Mexico," Ruhr Economic Papers 0263, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    11. Azuara, Oliver, 2011. "Effect of universal health coverage on marriage, cohabitation and labor force participation," MPRA Paper 35074, University Library of Munich, Germany.
    12. Carlos A. Ibarra & Robert A. Blecker, 2016. "Structural change, the real exchange rate and the balance of payments in Mexico, 1960–2012," Cambridge Journal of Economics, Oxford University Press, vol. 40(2), pages 507-539.
    13. Janina León, 2012. "Calificación y Seguridad Social de la Mano de Obra en México," Working Papers 0612, Universidad Iberoamericana, Department of Economics.
    14. Gordon H. Hanson, 2010. "Why Isn't Mexico Rich?," Journal of Economic Literature, American Economic Association, vol. 48(4), pages 987-1004, December.
    15. Robert A. Blecker, 2015. "Integration, Productivity, and Inclusion in Mexico: A Macro Perspective," Working Papers 2015-06, American University, Department of Economics.
    16. Gabriel Ulyssea, 2014. "Firms, Informality and Development: Theory and evidence from Brazil," Textos para discussão 632, Department of Economics PUC-Rio (Brazil).
    17. repec:iza:izawol:journl:y:2017:n:394 is not listed on IDEAS
    18. José Ernesto López Córdova & Juan Rebolledo Márquez Padilla, 2016. "Productivity in Mexico: Trends, Drivers and Institutional Framework," International Productivity Monitor, Centre for the Study of Living Standards, vol. 30, pages 28-42, Spring.
    19. Michaelsen, Maren M. & Haisken-DeNew, John P., 2011. "Migration Magnet: The Role of Work Experience in Rural-Urban Wage Differentials in Mexico," Ruhr Economic Papers 263, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    20. Isidro Soloaga & Mariana Pereira, 2013. "Local Multipliers and the Informal Sector in Mexico 2000-2010," Working Papers 0513, Universidad Iberoamericana, Department of Economics.
    21. Maren Michaelsen & John Haisken-DeNew, 2015. "Migration magnet: the role of work experience in rural–urban wage differentials," IZA Journal of Migration, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-25, December.

    More about this item

    Keywords

    Mexico; family policy; informality; regulation;

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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