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 …

the same firm. This management variation accounts for about a fifth of the spread of productivity, a similar fraction as …

Recent research suggests that much of the cross-firm variation in measured productivity is due to differences in use of … longitudinal earnings records for their employees to study the relationship between productivity, management, worker ability, and … and firm-level productivity in Germany. In our preferred TFP estimates only a small fraction of this correlation is …