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Rapid economic changes throughout the world economy offer new possibilities for economic development. Yet the multitude of people in an impoverished underclass often find the burst of economic development in their country continues to exclude them. As technologies and demographics reshape economies, the underclass finds its skills increasingly peripheral to the urban economy into which it is drawn. The daunting task before Mexico in raising the living standards of its people is carefully analyzed with the help of economic theory. The current focus on Mexico and Latin America since the passage of NAFTA makes this a particularly relevant book for economists and readers interested in labor, international topics, and in Mexico.