Question: A study by the McKinsey Global Institute reported that labor productivity increased at an average annual rate of 5.8 percent between 1999 and 2013 in

A study by the McKinsey Global Institute reported that labor productivity increased at an average annual rate of 5.8 percent between 1999 and 2013 in Mexico's large companies, but it fell at an average annual rate of 6.5 percent over the same period for its smaller firms, such as family-owned stores and bakeries. Briefly explain why productivity growth would be much higher for Mexico's largest companies than for its smaller companies.

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