Policies to Promote Growth and Economic Efficiency in Mexico

54 Pages Posted: 8 Feb 2010

See all articles by Javier Arias

Javier Arias

University of Chicago - Booth School of Business - Economics

Oliver Azuara

University of Chicago - Harris Public Policy

Pedro Bernal

University of Chicago - Harris Public Policy

James J. Heckman

University of Chicago - Department of Economics; National Bureau of Economic Research (NBER); American Bar Foundation; Institute for the Study of Labor (IZA); CESifo (Center for Economic Studies and Ifo Institute)

Cajeme Villarreal

University of Chicago - Booth School of Business - Economics

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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.

Keywords: Mexico, family policy, informality, regulation

JEL Classification: J13, L51, O17

Suggested Citation

Arias, Javier and Azuara, Oliver and Bernal, Pedro and Heckman, James J. and Villarreal, Cajeme, Policies to Promote Growth and Economic Efficiency in Mexico. IZA Discussion Paper No. 4740. Available at SSRN: https://ssrn.com/abstract=1549216

Javier Arias (Contact Author)

University of Chicago - Booth School of Business - Economics ( email )

Graduate School of Business
1101 East 58th Street
Chicago, IL 60637
United States

Oliver Azuara

University of Chicago - Harris Public Policy ( email )

1155 East 60th Street
Chicago, IL 60637
United States

Pedro Bernal

University of Chicago - Harris Public Policy ( email )

1155 East 60th Street
Chicago, IL 60637
United States

James J. Heckman

University of Chicago - Department of Economics ( email )

1126 East 59th Street
Chicago, IL 60637
United States
773-702-0634 (Phone)
773-702-8490 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

American Bar Foundation

750 N. Lake Shore Drive
Chicago, IL 60611
United States

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Cajeme Villarreal

University of Chicago - Booth School of Business - Economics ( email )

Graduate School of Business
1101 East 58th Street
Chicago, IL 60637
United States

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