The Impacts of COVID-19 on Informal Labor Markets : Evidence from Peru
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 outc...
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okr-10986-356362021-06-03T05:10:44Z The Impacts of COVID-19 on Informal Labor Markets : Evidence from Peru Cueva, Ronald Del Carpio, Ximena Winkler, Hernan CORONAVIRUS COVID-19 PANDEMIC IMPACT INFORMALITY LABOR MARKET WORKING FROM HOME GENDER PUBLIC TRANSPORTATION JOB LOSS EMPLOYMENT 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. 2021-06-02T13:04:44Z 2021-06-02T13:04:44Z 2021-05 Working Paper http://documents.worldbank.org/curated/en/614731621951519340/The-Impacts-of-COVID-19-on-Informal-Labor-Markets-Evidence-from-Peru http://hdl.handle.net/10986/35636 English Policy Research Working Paper;No. 9675 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Latin America & Caribbean Peru |
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Digital Repositories |
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World Bank |
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English |
topic |
CORONAVIRUS COVID-19 PANDEMIC IMPACT INFORMALITY LABOR MARKET WORKING FROM HOME GENDER PUBLIC TRANSPORTATION JOB LOSS EMPLOYMENT |
spellingShingle |
CORONAVIRUS COVID-19 PANDEMIC IMPACT INFORMALITY LABOR MARKET WORKING FROM HOME GENDER PUBLIC TRANSPORTATION JOB LOSS EMPLOYMENT Cueva, Ronald Del Carpio, Ximena Winkler, Hernan The Impacts of COVID-19 on Informal Labor Markets : Evidence from Peru |
geographic_facet |
Latin America & Caribbean Peru |
relation |
Policy Research Working Paper;No. 9675 |
description |
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. |
format |
Working Paper |
author |
Cueva, Ronald Del Carpio, Ximena Winkler, Hernan |
author_facet |
Cueva, Ronald Del Carpio, Ximena Winkler, Hernan |
author_sort |
Cueva, Ronald |
title |
The Impacts of COVID-19 on Informal Labor Markets : Evidence from Peru |
title_short |
The Impacts of COVID-19 on Informal Labor Markets : Evidence from Peru |
title_full |
The Impacts of COVID-19 on Informal Labor Markets : Evidence from Peru |
title_fullStr |
The Impacts of COVID-19 on Informal Labor Markets : Evidence from Peru |
title_full_unstemmed |
The Impacts of COVID-19 on Informal Labor Markets : Evidence from Peru |
title_sort |
impacts of covid-19 on informal labor markets : evidence from peru |
publisher |
World Bank, Washington, DC |
publishDate |
2021 |
url |
http://documents.worldbank.org/curated/en/614731621951519340/The-Impacts-of-COVID-19-on-Informal-Labor-Markets-Evidence-from-Peru http://hdl.handle.net/10986/35636 |
_version_ |
1764483468271550464 |