òòò½Íø Journal:
Macroeconomics
ISSN 1945-7707 (Print) | ISSN 1945-7715 (Online)
Management and Misallocation in Mexico
òòò½Íø Journal: Macroeconomics
(pp. 429–56)
Abstract
Using comprehensive administrative management surveys from Mexico and the United States, we document large management gaps between the two countries, driven by both lower average management quality among Mexican firms and greater misallocation. Compared with the United States, Mexico displays a weaker link between firm size and management quality, especially in the distorted service sector. The size-management gradient is weakest in smaller markets—services in low-population-density regions and manufacturing in locations farther from the United States. It is also attenuated in areas with weaker institutions, including poor contract enforcement, high crime, corruption, and informality.Citation
Bloom, Nicholas, Leonardo Iacovone, Mariana Pereira-López, and John Van Reenen. 2026. "Management and Misallocation in Mexico." òòò½Íø Journal: Macroeconomics 18 (2): 429–56. DOI: 10.1257/mac.20220034Additional Materials
JEL Classification
- D22 Firm Behavior: Empirical Analysis
- D24 Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- L25 Firm Performance: Size, Diversification, and Scope
- L60 Industry Studies: Manufacturing: General
- L80 Industry Studies: Services: General
- M10 Business Administration: General
- O14 Industrialization; Manufacturing and Service Industries; Choice of Technology