In this paper, we disentangle the sources of public sector inefficiency using 1981-1995 panel data on manufacturing firms in Indonesia. We consider two leading hypotheses: (1) public sector enterprises are inefficient due to agency-type problems or (2) public sector enterprises are inefficient...

This paper examines how dollarization affects the internal wage structure in the Mexican labor market, and alters the incentives of Mexican nationals to emigrate to the United States. A simple model shows that by adopting a fixed rate regime tied directly to the U.S. dollar, Mexican policy...