Mobility Restrictions and Automation in the Developing World: Evidence from Peru's Labor Market
Date issued
Apr 2023
Subject
Labor Force;
Coronavirus;
Industry;
Work Automation;
Automation;
Workforce and Employment;
Labor Market;
Formal Labor;
Labor;
Wage;
Person with Disability
JEL code
J21 - Labor Force and Employment, Size, and Structure;
J46 - Informal Labor Markets;
J62 - Job, Occupational, and Intergenerational Mobility;
O33 - Technological Change: Choices and Consequences • Diffusion Processes
Country
Peru
Category
Working Papers
Mobility restrictions have the potential to accelerate automation. Using difference-in-differences and triple-differences empirical strategies, and leveraging cross-industry variation in mobility restrictions and within-industry variations in automation risk, this paper estimates the impact of pandemic-related restrictions on automation in Peru. Our results indicate that mobility restrictions significantly decreased employment rates (22.5%) and hourly wages (74.1%) for workers in highly automatable jobs up to 18 months after the shock. These effects were particularly pronounced among women, small and medium-sized firms, informal workers, and individuals with low and medium skill levels working in manufacturing, construction, and services. Evidence suggests that occupational mobility from high-risk to low-risk jobs drove recovery afterwards.
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