This article analyzes the determinants of differences in growth rates between Mexican states during 1993-2010, and proposes an explanation that highlights the role of three factors: the migration phenomenon that reallocated the economically active population among regions; interstate differences in human capital endowments, as well as in the public and foreign investment behavior that influenced the ability of regions to generate high quality jobs; and employment growth in services, which was accompanied by an increase in the share of low productivity activities, especially those related to the household sector.