Foreign, Commonwealth & Development Office

10/04/2024 | Press release | Distributed by Public on 10/04/2024 06:57

Does turnover inhibit specialization? Evidence from a skill survey in Peru

Does turnover inhibit specialization? Evidence from a skill survey in Peru

A new survey of occupational skills in Peru to investigate human capital differences between poor and rich countries.

From:Foreign, Commonwealth & Development OfficePublished14 March 2024
Country: PeruDocument Type: Working PaperTheme: Economic GrowthAuthors: Atencio de Leon, A.,, Lee, M., Macalus, C.

Abstract

The authors design, pilot, and held a new survey of occupational skills in Peru, to investigate human capital differences between poor and rich countries. Though the average skill level is comparable, Peruvian jobs have markedly more uniform skill profiles than jobs in the USA. However, matching frictions are no more severe than in the USA, and recruiting technology is largely equivalent as well. A model with complementarities in production offers a plausible explanation. Uncertainty about labour availability, more pronounced in poor countries' turbulent labour markets, destabilizes production. This generates an endogenous labour demand preference for unspecialized workers.

This is an output of the Structural Transformation and Economic Growth (STEG) programme.

Citation

Atencio de Leon A, Lee M and Macalus C. 'Does turnover inhibit specialization? Evidence from a skill survey in Peru' Structural Transformation and Economic Growth (STEG) WP087, 2024

Links

Does turnover inhibit specialization? Evidence from a skill survey in Peru

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Published 14 March 2024