Economic and Social Upgrading: Definitions, connections and exploring means of measurement

This paper reviews and synthesizes the literature on social upgrading, while exploring its connections with economic upgrading. Using the parsimonious method proposed by Bernhardt and Milberg and an alternative method that takes into account increases in national productivity, this paper analyzes the case of Mexico. Though the proposed approach to social upgrading can be made more sophisticated through the inclusion of more variables, in order to facilitate the replication of the analysis in developing countries where data are scarce, labor productivity, wages and employment were considered sufficient information to analyze economic and social upgrading.