Management and Misallocation in Mexico

Nicholas Bloom, Leonardo Iacovone, Mariana Pereira-López and John van Reenen

American Economic Journal: Macroeconomics, 2026, vol. 18, issue 2, 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.

JEL-codes: D22 D24 L25 L60 L80 M10 O14 (search for similar items in EconPapers)
Date: 2026
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Related works:
Working Paper: Management and misallocation in Mexico (2022)
Working Paper: Management and misallocation in Mexico (2022)
Working Paper: Management and Misallocation in Mexico (2022)
Working Paper: Management and misallocation in Mexico (2022)
Working Paper: Management and Misallocation in Mexico (2022)
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DOI: 10.1257/mac.20220034

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