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The Impacts of COVID-19 on Informal Labor Markets : Evidence from Peru (English)

This paper provides new evidence on the impacts of the COVID-19 economic crisis on a labor market with a high prevalence of informality. The analysis uses a rich longitudinal household survey for Peru that contains a host of individual and job outcomes before and during the first months of the lockdown in 2020. The findings show that workers who had jobs in non-essential and informal sectors were significantly more likely to become unemployed. In contrast to developed countries, having a job amenable to working from home is not correlated with job loss when controlling for informal status. This is consistent with the high level of labor market segmentation observed in Peru, where high-skilled occupations are disproportionately concentrated in the formal sector, which was also better targeted by policies aimed at supporting firms and job protection during the crisis. In addition, the findings show that women were more likely to lose their jobs because female-dominated sectors are more intensive in face-to-face interactions and thereby more affected by social distancing measures. Increased childcare responsibilities also help explain the worse impacts on women in rural areas. Finally, workers who depended on public transportation before the crisis were more likely to lose their jobs during the early months of the pandemic.

Details

  • Author

    Cueva,Ronald, Del Carpio,Ximena Vanessa, Winkler-Seales,Hernan Jorge

  • Document Date

    2021/05/25

  • Document Type

    Policy Research Working Paper

  • Report Number

    WPS9675

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    Peru,

  • Region

    Latin America & Caribbean,

  • Disclosure Date

    2021/05/25

  • Disclosure Status

    Disclosed

  • Doc Name

    The Impacts of COVID-19 on Informal Labor Markets : Evidence from Peru

  • Keywords

    job loss; Broadband Access; Public Transportation; Poverty and Equity; rural area; access to internet; labor income; high rates of employment; higher level of education; Public and Private Institution; information on labor market; gender gap in employment; lower level of education; labor market outcome; labor market impact; labor market segmentation; individual characteristic; informal labor market; share of woman; complete secondary education; change in employment; employment loss; channels of transmission; Poverty & Inequality; state of emergency; place of residence; change in income; labor market indicator; Home Based Work; working at home; unemployment insurance system; use of technology; Homebased Work; internet service provider; job destruction rate; social protection system; longitudinal household survey; number of passengers; households with child; loss of employment; written contract; cable tv; formal sector; job characteristic; informal worker; standard error; descriptive statistic; point estimate; income loss; informal sector; salaried worker; young child; estimation result; high share; Informal Jobs; gender note; internet connectivity; demographic group; recovery process; domestic service; high school; low-wage worker; female workers; broadband connectivity; rural worker; other sectors; educational level; skilled job; social distance; household expenditure; open access; previous crisis; older worker; vulnerable worker; sector work; small cities; gender indicator; transport company; job retention; job experience; economics literature; unskilled worker; rural population; general media; print media; internet connection; agricultural activity; massive decline; spatial disparities; economic sector; development policy; petroleum product; regression table; amazon region; loss rate; average worker; labor activity; steep decline; lower rate; sanitary condition; urban woman; research need; geographic area; coastal region; advanced economy; telephone line; estimation strategy; empirical analysis; Research Support; cge model; rural woman; economic crisis; wage employment; demographic characteristic; population work; urban worker; big city; female employment; urban travel; home phone; expenditure share; income inequality; household interview; learning strategy; job protection; urban one; future research; simulation analysis; real time; school closure; occupational hazard

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Citation

Cueva,Ronald Del Carpio,Ximena Vanessa Winkler-Seales,Hernan Jorge

The Impacts of COVID-19 on Informal Labor Markets : Evidence from Peru (English). Policy Research working paper,no. WPS 9675,COVID-19 (Coronavirus) Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/614731621951519340/The-Impacts-of-COVID-19-on-Informal-Labor-Markets-Evidence-from-Peru