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Under-Rewarded Efforts: The Elusive Quest for Prosperity in Mexico

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  • Levy Algazi, Santiago

Abstract

Why has an economy that has done so many things right failed to grow fast? Under-Rewarded Efforts traces Mexico’s disappointing growth to flawed microeconomic policies that have suppressed productivity growth and nullified the expected benefits of the country’s reform efforts. Fast growth will not occur doing more of the same or focusing on issues that may be key bottlenecks to productivity growth elsewhere, but not in Mexico. It will only result from inclusive institutions that effectively protect workers against risks, redistribute towards those in need, and simultaneously align entrepreneurs’ and workers’ incentives to raise productivity.

Suggested Citation

  • Levy Algazi, Santiago, 2018. "Under-Rewarded Efforts: The Elusive Quest for Prosperity in Mexico," IDB Publications (Books), Inter-American Development Bank, number 8971, November.
    • Handle: RePEc:idb:idbbks:8971
    DOI: http://dx.doi.org/10.18235/0001189
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    Cited by:

    1. Cebreros Alfonso & Heffner-Rodríguez Aldo & Livas René & Puggioni Daniela, 2020. "Automation Technologies and Employment at Risk: The Case of Mexico," Working Papers 2020-04, Banco de México.

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