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Import penetration and returns to tasks: recent evidence from the Peruvian labour market

Author

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  • Elizabeth J. Casabianca

    (Prometeia)

  • Alessia Lo Turco

    () (Università Politecnica delle Marche)

  • Claudia Pigini

    (Università Politecnica delle Marche)

Abstract

Abstract This paper provides original evidence on the impact of import penetration on wages of individuals performing manual/cognitive task-intensive jobs in the Peruvian labour market. Matching labour force surveys with task indicators from the us O*Net database and with information on industry- and occupation-specific import exposure, we build a continuous measure of manual intensity to uncover the heterogeneous effect of import penetration on workers’ wages. In order to tackle the endogeneity hampering the consistent estimation of our effects of interest, we combine an identification strategy based on heteroskedasticity with the traditional instrumental variable approach. We find that workers employed in highly cognitive/less manual-intensive jobs in the Peruvian manufacturing sectors are positively affected by industry-specific import penetration. This evidence is confirmed and magnified for the whole economy when the effects of occupation-specific import exposure are addressed.

Suggested Citation

  • Elizabeth J. Casabianca & Alessia Lo Turco & Claudia Pigini, 2019. "Import penetration and returns to tasks: recent evidence from the Peruvian labour market," Empirical Economics, Springer, vol. 56(2), pages 551-617, February.
  • Handle: RePEc:spr:empeco:v:56:y:2019:i:2:d:10.1007_s00181-017-1412-5
    DOI: 10.1007/s00181-017-1412-5
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    Cited by:

    1. Budría, Santiago & Milgram Baleix, Juliette, 2019. "Offshoring, job satisfaction and job insecurity," Economics Discussion Papers 2019-68, Kiel Institute for the World Economy (IfW).

    More about this item

    Keywords

    Peru; Import penetration; Task approach; Manual-intensive occupations;

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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