ENAPROCE 2015 is the first large-scale firm survey in Mexico. It is statistically representative at the state and sector levels and compares with US MOPS. It includes information for 25,456 firms from manufacturing, commerce, and services, with a different questionnaire applied to 9,103 microenterprises. The survey was implemented by INEGI (national statistics office), guaranteeing a very low non-response rate (4%). The sample framework is the 2014 Economic Census, which allows matching information with other National high quality statistical projects.

MEXICO TEAM

Title of the person

Nicholas (Nick) Bloom is the William Eberle Professor of Economics at Stanford University, a Senior Fellow of SIEPR, and the Co-Director of the Productivity, Innovation and Entrepreneurship program at the National Bureau of Economic Research. His research focuses on management practices and uncertainty. He previously worked at the UK Treasury and McKinsey & Company.

He is a Fellow of the American Academy of Arts and Sciences, and the recipient of the Alfred Sloan Fellowship, the Bernacer Prize, the European Investment Bank Prize, the Frisch Medal, the Kauffman Medal and a National Science Foundation Career Award. He has a BA from Cambridge, an MPhil from Oxford, and a PhD from University College London.

Gordon Y Billard Professor in Management and Economics, MIT

John Van Reenen the Gordon Y Billard Professor in Management and Economics and is jointly appointed as Professor of Applied Economics at the MIT Sloan School of Management and in the Department of Economics. From October 2003 to July 2016 John Van Reenen was Professor of Economics at the London School of Economics and the Director of the Centre for Economic Performance, Europe’s leading applied economics research centre. In 2016 he received the Medal of the Order of the British Empire for services to Economics and Public Policy Making, and in 2009 was awarded the Yrjö Jahnsson Award, the European equivalent to the US Bates Clark Medal. Van Reenen has published widely on the economics of innovation, labor markets and productivity. He has been a senior policy advisor to the Secretary of State for Health, Downing Street, and for many international organizations. He has also been a Visiting Professor at the University of California at Berkeley, Stanford and at Harvard University, a Research Fellow at the Institute for Fiscal Studies, a Professor at University College London, a partner in Lexecon Ltd. (now CRAI), and Chief Technology Officer of a software start-up. Van Reenen holds a BA in economics and social and political sciences from Queens College, University of Cambridge, an MSc in industrial relations from the London School of Economics, and a PhD from University College London in economics.

RESEARCH

Management and misallocation in Mexico

We argue that greater misallocation is a key driver of the worse management practices in Mexico compared to the US. These management practices are strongly associated with higher productivity, growth, trade, and innovation. One indicator of greater misallocation in Mexico is the weaker size-management relationship compared to the US, particularly in the highly distorted Mexican service sector. Second, the size-management relationship is weaker in smaller markets, measured by distance to the US for manufacturing firms and population density for service firms. Third, municipalities with weaker institutions, measured by contract enforcement, crime, and corruption, have a weaker size-management relation. These results are consistent with frictions lowering aggregate management quality and productivity.