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Management and Misallocation in Mexico

Nicholas Bloom et al.

American Economic Journal: Macroeconomics2026https://doi.org/10.1257/mac.20220034article
AJG 4ABDC A*
Weight
0.50

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 D22, D24, L25, L60, L80, M10, O14)

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https://doi.org/https://doi.org/10.1257/mac.20220034

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@article{nicholas2026,
  title        = {{Management and Misallocation in Mexico}},
  author       = {Nicholas Bloom et al.},
  journal      = {American Economic Journal: Macroeconomics},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1257/mac.20220034},
}

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Management and Misallocation in Mexico

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

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