'Better Policies' Series In recent years, Mexico has distinguished itself for having a solid macroeconomic framework with low inflation and strong openness to international markets. This has increased the country’s attractiveness as a destination for international investment, which is increasingly flowing into high value-added sectors. Since recently, Mexico hosts a large number of modern firms, notably in the sectors of aerospace, automobiles, foods and beverages, which employ high-skilled and well-educated workers. But other parts of the economy are characterised by high informality, low-skilled work, weak productivity and out-of-date technologies. As a result, the Mexican economy experienced a prolonged growth slowdown during the past three decades, leaving it behind other OECD countries and hurting the population’s relative living standards. This document explores Mexico’s education and skills priorities with regard to informality and provides some recommendations.