Examines how the Mexican government's penetration into 299 rural and urban counties, 1900-40, was related to growth in trade and service jobs. Emphasizes the government's support for written literacy and mass schooling as subtle strategies for incorporating peasants into urban institutions. Contains 39 references. (SV)

The level and character of school investment affected the national economic output in agriculture and industry in Mexico during two periods, 1880-1910 and 1920-1925. Prior to the 1910 revolution, the Mexican government encouraged urban-centered industrial development, and schools were mostly locally- controlled, urban institutions. In…