World Bank2014-01-172014-01-172013-04https://hdl.handle.net/10986/16579This policy note outlines short, and medium-term policy options for addressing critical challenges affecting labor markets in Mexico, and in particular labor productivity. As labor is the main source of income for most of the population, poverty is closely linked to underemployment and low wages. Yet labor markets have played a limited role in poverty reduction in Mexico. Labor income accounted for just 22 percent of the decline in poverty in Mexico over the last decade compared with 38 percent in the rest of the region. Between the third quarter of 2008 and the third quarter of 2011, the labor income poverty index2 continued to decline in Brazil, Ecuador, and Peru but increased in Mexico. The equivalent measure produced by CONEVAL (Consejo Nacional de Evaluation), shows the labor poverty trend to be increasing through the first quarter of 2012. Finding the right bundle of policies to improve labor productivity and the functioning of the labor markets can serve to improve economic growth and welfare outcomes.en-USCC BY 3.0 IGOABUSEACQUISITION OF SKILLSACTIVE LABORACTIVE LABOR MARKETACTIVE LABOR MARKET PROGRAMSADULT LITERACYAGE GROUPALLOCATIVE EFFICIENCYAVERAGE EDUCATION LEVELBASIC EDUCATIONCHILD CARECHILD DEVELOPMENTCHILDBIRTHCLASSROOMCOGNITIVE SKILLSCOMPLETION RATESCRISESCULTURAL CHANGECURRICULACURRICULUMDEVELOPING COUNTRIESDEVELOPMENT INSTITUTIONSDEVELOPMENT STRATEGIESDISADVANTAGED STUDENTSDISADVANTAGED YOUTHDISMISSALDIVISION OF LABORDOWNWARD PRESSUREDROPOUTDROPOUT RATESEARLY CHILD DEVELOPMENTEARLY CHILDHOODEARLY CHILDHOOD DEVELOPMENTECONOMIC CONDITIONSECONOMIC CRISESECONOMIC FREEDOMECONOMIC GROWTHECONOMIC POLICIESECONOMIC RECOVERYECONOMICSEDUCATION INSTITUTIONSEDUCATION SYSTEMEMPLOYABILITYEMPLOYEEEMPLOYMENT GROWTHEMPLOYMENT OPPORTUNITIESEMPLOYMENT OUTLOOKEMPLOYMENT SERVICEEMPLOYMENT SERVICESENROLLMENT RATESENROLMENT RATESFEMALE LABORFEMALE LABOR FORCEFERTILITYFINANCIAL CONSTRAINTSFORMAL EDUCATIONHEALTH INSURANCEHIGH DROPOUTHIGHER EDUCATIONHUMAN CAPITALIMPROVING TEACHER TRAININGINCOMEINCOME INEQUALITYINCOME SUPPORTINDIVIDUAL CHOICESINFORMAL SECTORINFORMATION SYSTEMINSTITUTIONAL MECHANISMSJOB COUNSELINGJOB CREATIONJOB GENERATIONJOB OPPORTUNITIESJOB PLACEMENTJOB SEARCHJOB SEARCH ASSISTANCEJOB SECURITYJOB TRAININGJOBSKNOWLEDGE ECONOMYLABOR CODELABOR COSTSLABOR DEMANDLABOR DISPUTESLABOR FORCELABOR FORCE GROWTHLABOR FORCE PARTICIPATIONLABOR LAWLABOR LAWSLABOR MARKETLABOR MARKET FLEXIBILITYLABOR MARKET NEEDSLABOR MARKET RIGIDITIESLABOR MARKET RIGIDITYLABOR MARKETSLABOR PRODUCTIVITYLABOR REGULATIONLABOR REGULATIONSLABOR RELATIONSLABOR STATISTICSLABOR SUPPLYLABORERSLABOURLABOUR MARKETLEVEL OF DEVELOPMENTLEVEL OF EDUCATIONLEVELS OF EDUCATIONLIFELONG LEARNINGLOW LABOR PRODUCTIVITYLOW UNEMPLOYMENTLOW UNEMPLOYMENT RATESLOWER SECONDARY LEVELMANDATESMANDATORY SEVERANCEMANPOWERMATHEMATICSMIDDLE SCHOOLMIGRATIONMINIMUM WAGEMORAL HAZARDNATIONAL STRATEGYNET ENROLMENTNUMERACYOCCUPATIONOLD- AGEOLD-AGEON-THE-JOB TRAININGPAYROLL TAXPAYROLL TAXESPEDAGOGICAL METHODSPENSIONSPERMANENT EMPLOYMENTPOLICY RESEARCHPOLICY RESEARCH WORKING PAPERPOLITICAL ECONOMYPOPULATION GROUPSPRIMARY EDUCATIONPRIMARY SCHOOLSPRIVATE PROVIDERSPRIVATE SECTORPRODUCTIVE SECTORPRODUCTIVITY GAINSPRODUCTIVITY GROWTHPRODUCTIVITY IMPROVEMENTPROGRAM DESIGNQUALITY ASSURANCERATES OF RETURN TO EDUCATIONRE-TRAININGREADINGREAL WAGESREMEDIAL EDUCATIONRETIREMENTRIGID LABOR MARKETSRURAL AREASSCHOLARSHIP PROGRAMSCHOOL DROPOUTSCHOOL ENROLLMENTSCHOOL GRADUATESSCHOOL PERFORMANCESCHOOL YEARSCHOOLINGSCHOOLSSECONDARY EDUCATIONSECONDARY SCHOOLSECONDARY SCHOOL ENROLMENTSECRETARIESSERVICE PROVIDERSSERVICE SECTORSERVICE SECTORSSEVERANCE PAYSEVERANCE PAYMENTSSKILL DEVELOPMENTSKILLED LABORSKILLED WORKFORCESKILLS ACQUISITIONSKILLS DEVELOPMENTSKILLS TRAININGSOCIAL DEVELOPMENTSOCIAL INCLUSIONSOCIAL POLICYSOCIAL SECURITYSOCIAL SERVICESSOCIAL WORKERSSTATE GOVERNMENTSSTUDENT PERFORMANCETEACHERTEACHER DEVELOPMENTTEACHER PERFORMANCETEACHERSTEACHINGTEACHING METHODSTECHNICAL SKILLSTECHNICAL TRAININGTEMPORARY JOBSTERTIARY EDUCATIONTERTIARY LEVELTOTAL EMPLOYMENTTRAINING CENTERSTRAINING INSTITUTIONSTRAINING PROVIDERSTRAINING SCHOOLSTRAINING SERVICESUNEMPLOYEDUNEMPLOYMENT INSURANCEUNEMPLOYMENT RATEUNIONSUNIVERSAL COVERAGEURBAN AREASVOCATIONAL TRAININGVOCATIONAL TRAINING PROGRAMSVULNERABLE GROUPSWORK SCHEDULESWORKERWORKER PRODUCTIVITYWORKERSYOUNG PEOPLEYOUNG WORKERSYOUTH UNEMPLOYMENTYOUTH UNEMPLOYMENT RATESWorld Bank10.1596/16579