Contents -- Contributors -- Acknowledgments -- Abbreviations -- Equity, Competition, and Growth in Mexico: An Overview -- Part I: Concepts and International Experience -- 1 Equity and Development: Political Economy Considerations -- 2 Saving Growth from Unequal Influence -- 3 The Political Economy of Equality and Growth in Mexico: Lessons from the History of the United States -- Part II: Interactions between Equity, Institutions, and Growth in Mexico -- 4 The Inequality Trap and Its Links to Low Growth in Mexico -- 5 Perverse Equilibria: Unsuitable but Durable Institutions -- Part III: Equity and Core Institutions in Mexico: Social Security, the Labor Market, and Banking -- 6 Social Security Reform in Mexico: For Whom? -- 7 Mexican Labor Markets: Protection, Productivity, and Power -- 8 Why Banks Do Not Lend: The Mexican Financial System -- Part IV: How Unequal Structures Hurt Competition in Major Sectors -- 9 Competition and Equity in Telecommunications -- 10 Priorities for Telecommunications Reform in Mexico -- 11 The Governance of Mexico's Oil Industry -- Index -- Figures -- 1 GDP Per Capita, Mexico and Selected Comparators, 1950-2004 -- 3.1 The Standard Oil Company -- 3.2 The Evolution of Wealth Inequality, 1780-1980 -- 3.3 The Evolution of Income Inequality, 1910-95 -- 3.4 A Contemporary View of the Growth Effects of Antitrust Actions -- 3.5 Democracy Demolishing the Trusts -- 4.1 How Unequal Structures Cause Suboptimal Development -- 4.2 Ratio of Net Worth of Mexican Billionaires to GDP, 1990-2008 -- 4.3 Net Worth of Local Billionaires in Relation to GDP, Mexico in International Context, 2007 -- 4.4 Implicit Income of Billionaires Compared with the Incomes of the Richest Groups in the ENIGH, 2004 -- 4.5 Distribution of Incomes of Agricultural and Nonagricultural Workers -- 4.6 CFC Resolutions on Monopolistic Practices, 1998-2004.

4.7 Effect of Being a Billionaire-Linked Company on the Probability of the CFC Finding Monopolistic Practices and Obtaining an Amparo -- 4.8 Net Accounting Capital of PEMEX, 1991-2006 -- 4.9 Interaction between Levels of State-Level Conflict and the Impact of Teacher Incentives -- 4.10 Low Levels of Agricultural Productivity Despite High Levels of Public Spending: A Comparison of Mexico and Other Latin American Countries -- 4.11 Mexican Growth in International Perspective and Sources of Growth -- 4.12 GDP Growth in Mexico and Its Components, Selected Years -- 4.13 High Costs and Low Quality of Service in Electricity, Selected Latin American Countries and Years -- 4.14 Bias to the Rich of the Distribution of Electricity Consumption Subsidies, 2002 -- 4.15 Investment in Telecommunications, Selected Countries, early 2000s -- 5.1 Comparison of Per Capita GDP in China and Selected Latin American Countries with That in the United States, 1820-2000 -- 5.2 Research and Development as a Percentage of GDP, Selected Economies and Groups of Countries, 2005 -- 5.3 Telecommunications Patent Applications Filed with the European Patent Office, Selected Countries and Years -- 5.4 Regulation in Products Market, OECD Countries, 2003 -- 5.5 Telephone Charges, OECD Countries, August 2005 -- 5.6 Percentage of Students at Each Level of Proficiency on the PISA Mathematics Scale, Selected Economies, 2003 -- 5.7 Difference in Performance between Public Schools and Private Schools, Selected Economies and the OECD, 2003 -- 6.1 Social Security with a Formal and an Informal Sector -- 6.2 Federal Subsidies for Social Security and Social Protection, 1998-2006 -- 7.1 (a) Distribution of Wages in the Formal and Informal Sectors, Monthly, 1999 (b) Cumulative Distribution of Wages in the Formal and Informal Sectors.

7.2 Gross Labor Flows between Formal Salaried and Self-Employed Sectors, 1987-2003 -- 7.3 Self-Employment Versus Level of Development, Selected Countries, 1990s -- 7.4 Firing Rigidities Index, Selected Economies, 1990s -- 7.5 Education Expenditure and Mathematics Scores, Selected Economies -- 8.1 Private Bank Credit as a Percentage of GDP, OECD Countries, 2005 -- 8.2 Private Credit from Deposit Money Banks as a Percentage of GDP, Latin American Countries, 2005 -- 8.3 Private Credit from Deposit Money Banks as a Percentage of GDP, Mexico, 1950-2004 -- 8.4 Percentage of Firms Using Bank Credit, Year End, 1998-2005 -- 8.5 Development Bank Credit to Private Enterprises, 2000-06 -- 8.6 Sum of Stock and Private Bond Market Capitalization as a Percentage of GDP, Latin America and the OECD Selected Countries, 2005 -- 8.7 Private Bond Market and Stock Market Capitalizations as a Percentage of GDP, 1990-2005 -- 8.8 FDI Flows to Mexico, 1980-2005 -- 8.9 Gross Fixed Capital Formation as a Percentage of GDP, 1980-2005 -- 8.10 FOBAPROA-IPAB Bonds as a Percentage of Bank Credit Portfolios, September 1997-December 2005 -- 8.11 Market Share by Assets, Mexican Retail Banks, 2002-05 Averages -- 8.12 Credit to Consumers and Private Firms as a Percentage of Assets, Mexican Retail Banks, Quarterly Averages, 2002-05 -- 8.13 Commercial Loans as a Percentage of Assets, Mexican Retail Banks, Quarterly Averages, 2002-05 -- 8.14 Commissions and Fees as a Percentage of Income, Mexican Retail Banks, Quarterly Averages, 2002-05 -- 9.1 Weight of Telecommunications Services Rates in the Consumer Price Index, Selected Years -- 9.2 Share of Communications Services in Gross National Product, Selected Years -- 9.3 Evolution of Telephone Rates Relative to the Consumer Price Index, Selected Months and Years.

9.4 Investments by Telecommunication Companies, Mexico and Selected Emerging OECD Countries, 1991-2003 -- 9.5 Market Value of TELMEX and TELCEL Controlling Group Companies, November 2006 -- 9.6 Weight of TELMEX and TELCEL Controlling Group Companies in the Mexican Stock Index, November 2006 -- 9.7 TELMEX Revenues from Billing and Collection Charges, 1999-2005 -- 9.8 Mobile Carrier Revenue from Fixed-Mobile Interconnections, 2000-2005 -- 9.9 Broadband Penetration Per 100 Inhabitants, Selected Countries, 2006 -- 9.10 Evolution of Number of Broadband Internet Subscribers, Japan and Mexico, 2000-05 -- 9.11 TELMEX Revenues from Charges to Fixed Telephone Consumers on Long Distance Calls, 1999-2005 -- Tables -- 1 Major Actors in Mexico's Rent-Sharing Equilibrium -- 1.1 Schematic Representation of the Distributional Impact of an Equity-Enhancing Reform -- 3.1 The Persistence of the Landed Southern Elite in Four Black Belt Counties of Alabama, Selected Years -- 3.2 The Merger Boom, 1895-1904 -- 3.3 A Comparison of Industrial Concentration in 1860, 1901, and 1963 -- 4.1 Measures of Family Control, Selected Economies, 1995 -- 4.2 Average Earnings of Unionized and Nonunionized Workers by Sector, Selected Years -- 4.3 Percentage of Unionized and Nonunionized Workers by Quartile of the Earnings Distribution, 2000 and 2005 -- 4.4 Share of All Workers in Unions, by Sector, Selected Years -- 4.5 Real Increase in Incomes or Wealth in August 2005 Pesos, 2000-05 -- 4.6 Distribution of CFC Resolutions, 1998-2004 -- 4.7 Statistical Results on the Probabilities of Finding Monopolistic Practice and of Securing an Amparo among Billionaires' Companies -- 4.8 Statistical Results on the Probabilities of COFETEL Not Approving a Concession or Recommending a Sanction in the Telecommunications Sector.

4.9 Estimated Private Benefits of Control Measured as Block and Voting Premiums, Selected Countries -- 4.10 The Effects of Union and Sector on Workers' Earnings, Selected Years -- 4.11 The Premium for Being Unionized and in the Following Sectors Relative to Being Nonunionized in Other Sectors, Selected Years -- 4.12 The Ratio of the Present Value of Liabilities in Collective Labor Agreements to Firm Value for Electricity Companies -- 4.13 State Characteristics, State-Level Conflict with Unions, and Student Learning -- 4.14 Economy Characteristics and Oligarchic Family Control, Controlling for Per Capita Income -- 4.15 Constraints to Competitiveness -- 4.16 Telephone Rates, Selected Countries -- 5.1 Growth Rates in Per Capita GDP and GDP Per Hour Worked, Selected Countries and Periods -- 5.2 Price Differences in Airline Tariffs, December 2005 to August 2006 -- 5.3 Main Social Agreements between the State and Society under the PRI -- 6.1 Labor Force and Social Security Coverage, 2005 -- 6.2 Wages and Social Security Costs for a Worker Earning Twice the Minimum Wage, 2006 -- 6.3 AFORE's Profi ts, Commissions, and Subsidies, 1998-2005 -- 6.4 Real Annualized Net Rates of Return, 1997-2005 -- 6.5 A Comparison of the Pensions of an IMSS Worker and a Worker Affi liated with the IMSS -- 6.6 IMSS Investments per Beneficiary, 1981-2005 -- 6.7 Net Income and Net Worth, IMSS, 2001-05 -- 7.1 Wage Equations: Impact of Union Membership on Wages -- 7.2 Labor Demand Equations: Two-Stage Least Squares -- 8.1 Commercial Bank Credit as a Percentage of GDP, 1997-2005 -- 8.2 Performance of Mexican Banks, Ordinary Least Squares Regression Results -- 8.3 Income of Mexican Banks, Ordinary Least Squares Regression Results -- 9.1 Household Expenditure on Telecommunications Services by Population Decile, 2006.

9.2 Penetration of Telecommunications Services by Population Decile, 2006.