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Does Turnover Inhibit Specialization? Evidence from a Skill Survey in Peru

Author

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  • Andrea Atencio-De-Leon
  • Munseob Lee
  • Claudia Macaluso

Abstract

We design, pilot, and field a new survey of job skills in Peru to investigate human capital differences between poor and rich countries. Peruvian jobs have markedly more uniform skill profiles than jobs in the United States. On the other hand, matching frictions are no more severe than in the United States, and recruiting technology is largely equivalent as well. We propose a stylized model in the O-ring tradition, in which a labor demand preference for unspecialized workers can endogenously arise when there is uncertainty about labor availability.

Suggested Citation

  • Andrea Atencio-De-Leon & Munseob Lee & Claudia Macaluso, 2025. "Does Turnover Inhibit Specialization? Evidence from a Skill Survey in Peru," American Economic Review: Insights, American Economic Association, vol. 7(1), pages 56-70, March.
    • Handle: RePEc:aea:aerins:v:7:y:2025:i:1:p:56-70
    DOI: 10.1257/aeri.20230657
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    References listed on IDEAS

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    1. David McKenzie, 2017. "How Effective Are Active Labor Market Policies in Developing Countries? A Critical Review of Recent Evidence," The World Bank Research Observer, World Bank, vol. 32(2), pages 127-154.
    2. Anne O. Krueger, 1983. "Trade and Employment in Developing Countries, Volume 3: Synthesis and Conclusions," NBER Books, National Bureau of Economic Research, Inc, number krue83-1, June.
    3. Anne O. Krueger, 1983. "Trade and Employment in Less Developed Countries: The Questions," NBER Chapters, in: Trade and Employment in Developing Countries, Volume 3: Synthesis and Conclusions, pages 1-9, National Bureau of Economic Research, Inc.
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    More about this item

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J46 - Labor and Demographic Economics - - Particular Labor Markets - - - Informal Labor Market
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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