Much of Latin America suffers from a low skill trap characterized by a scarcity of good jobs and low investment in human capital. Understanding this trap requires an analysis of labor market dynamics such as informality and high turnover as well as the corporate strategies of multinational corporations and diversified business groups. Ben Ross Schneider is the Ford International Professor of Political Science at MIT and director of the MIT–Brazil and MIT–Chile programs. His books include Reinventing Leviathan: The Politics of Administrative Reform in Developing Countries and Business Politics and the State in 20th Century Latin America. Schneider’s current research includes projects on public–private partnerships, industrial policy and quasi-markets in education.