Measures of occupational differentiation in each of eight industries vary markedly among the states of Mexico, a finding that is construed as evidence of territorial divergence in economic development. The relation among states between the relative size of an industry and the amount of occupational differentiation is direct for some industries but inverse for others. The interpretation is that industry size and intraindustry division of labor are directly related only to the extent that the labor force is concentrated territorially. Findings for the states of Mexico 1950 and 1960 are consistent with the interpretation.

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