Growth, employment and internal migration: Peru, 2003-2007

We analyze trends in regional economic growth, employment and internal migration during one of the best periods of economic boom in Peru´s modern history. Migration among departamentos from 2002 to 2007, captured in the last population census, has been consistent with regional labour prospects, such as initial stocks and recent increases in the volumes of adequate employment. The relative size of internal migration has declined compared to the period 1988-1993 due to the virtual elimination of terrorism-led migration, retaking a long run declining trend observed for the South America region. However, migration corridors opened up in the 1980s and 1990s have persisted during this decade. Empirical models show that the migration decision also takes into account potential gains in living standards, through the improved access to economic and social infrastructure. Likewise, the report finds evidence that internal migration flows support the process of conditional convergence across regional per capita GDPs. However, these same flows do not seem to influence significantly the speed of earnings convergence across regions.