Peru: Employment and inequality trends

Jorge Dávalos; Paola Ballon

doi:10.1093/oso/9780192872241.003.0015

Peru: Employment and inequality trends

Research output: Chapter in Book/Report/Conference proceeding › Chapter › peer-review

Abstract

This chapter explores the relationship between skill-biased technological change (SBTC) and the inequality improvement observed in Peru during its trade liberalization episode (mid-2000s and 2010s). We use household survey data for the period 2004–18 to describe the evolution of labour force characteristics, their labour market returns, changes in occupational earnings, and the distribution of occupations. We account for workers’ productivity gains that may result from skill-biased technological change, by including occupation-specific routine-task content indices in Shapley and RIF decompositions of alternative inequality indicators. Although we find no evidence of SBTC effects on inequality, an additional investigation suggests that most of the slight improvement in inequality was driven by the commodity boom and its spillover effects through the construction sector.

Original language	English
Title of host publication	Tasks, skills, and institutions
Subtitle of host publication	The changing nature of work and inequality
Editors	Carlos Gradín, Piotr Lewandowski, Simone Schotte, Kunal Sen
Publisher	Oxford University Press
Pages	275-293
Number of pages	19
ISBN (Electronic)	978-0-19-196846-4
ISBN (Print)	978-0-19-287224-1
DOIs	https://doi.org/10.1093/oso/9780192872241.003.0015
State	Published - Jun 2023

Keywords

Earnings
Decomposition methods
Inequality
Peru
Commodity boom

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Access to Document

10.1093/oso/9780192872241.003.0015License: CC BY-NC-SA

Cite this

@inbook{80ae697cca6a46b88b0caa68fe2f388a,

title = "Peru: Employment and inequality trends",

abstract = "This chapter explores the relationship between skill-biased technological change (SBTC) and the inequality improvement observed in Peru during its trade liberalization episode (mid-2000s and 2010s). We use household survey data for the period 2004–18 to describe the evolution of labour force characteristics, their labour market returns, changes in occupational earnings, and the distribution of occupations. We account for workers{\textquoteright} productivity gains that may result from skill-biased technological change, by including occupation-specific routine-task content indices in Shapley and RIF decompositions of alternative inequality indicators. Although we find no evidence of SBTC effects on inequality, an additional investigation suggests that most of the slight improvement in inequality was driven by the commodity boom and its spillover effects through the construction sector.",

keywords = "Earnings, Decomposition methods, Inequality, Peru, Commodity boom",

author = "Jorge D{\'a}valos and Paola Ballon",

year = "2023",

month = jun,

doi = "10.1093/oso/9780192872241.003.0015",

language = "English",

isbn = "978-0-19-287224-1",

pages = "275--293",

editor = "Carlos Grad{\'i}n and Piotr Lewandowski and Simone Schotte and Kunal Sen",

booktitle = "Tasks, skills, and institutions",

publisher = "Oxford University Press",

address = "United Kingdom",

}

TY - CHAP

T1 - Peru

T2 - Employment and inequality trends

AU - Dávalos, Jorge

AU - Ballon, Paola

PY - 2023/6

Y1 - 2023/6

N2 - This chapter explores the relationship between skill-biased technological change (SBTC) and the inequality improvement observed in Peru during its trade liberalization episode (mid-2000s and 2010s). We use household survey data for the period 2004–18 to describe the evolution of labour force characteristics, their labour market returns, changes in occupational earnings, and the distribution of occupations. We account for workers’ productivity gains that may result from skill-biased technological change, by including occupation-specific routine-task content indices in Shapley and RIF decompositions of alternative inequality indicators. Although we find no evidence of SBTC effects on inequality, an additional investigation suggests that most of the slight improvement in inequality was driven by the commodity boom and its spillover effects through the construction sector.

AB - This chapter explores the relationship between skill-biased technological change (SBTC) and the inequality improvement observed in Peru during its trade liberalization episode (mid-2000s and 2010s). We use household survey data for the period 2004–18 to describe the evolution of labour force characteristics, their labour market returns, changes in occupational earnings, and the distribution of occupations. We account for workers’ productivity gains that may result from skill-biased technological change, by including occupation-specific routine-task content indices in Shapley and RIF decompositions of alternative inequality indicators. Although we find no evidence of SBTC effects on inequality, an additional investigation suggests that most of the slight improvement in inequality was driven by the commodity boom and its spillover effects through the construction sector.

KW - Earnings

KW - Decomposition methods

KW - Inequality

KW - Peru

KW - Commodity boom

UR - http://www.scopus.com/inward/record.url?scp=85172315070&partnerID=8YFLogxK

UR - https://www.mendeley.com/catalogue/613115fd-03de-3b54-b4ef-1d22df3fa234/

U2 - 10.1093/oso/9780192872241.003.0015

DO - 10.1093/oso/9780192872241.003.0015

M3 - Chapter

SN - 978-0-19-287224-1

SP - 275

EP - 293

BT - Tasks, skills, and institutions

A2 - Gradín, Carlos

A2 - Lewandowski, Piotr

A2 - Schotte, Simone

A2 - Sen, Kunal

PB - Oxford University Press

ER -

Peru: Employment and inequality trends

Abstract

Keywords

UN SDGs

Access to Document

Other files and links

Fingerprint

Cite this