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The Effects of Electrification on Employment in Rural Peru

  • Rosamaría Dasso


  • Fernando Fernandez


We examine the effects of a rural electrification program on employment in Peru. Exploiting the roll-out of the program across districts over time, we adopt differences-in-differences and fixedeffects strategies to estimate the impact of the program on labor market outcomes. The results from our preferred specification suggest that, among males, providing electrification increases hours of work and diminishes the likelihood of having a second occupation. Among females, the treatment rises earnings and these gains seem to be driven by a shift towards non-agricultural jobs. Then, we construct a measure of treatment intensity and show that each additional electrification project increases the magnitude of the estimated impacts (in absolute terms).

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Paper provided by CEDLAS, Universidad Nacional de La Plata in its series CEDLAS, Working Papers with number 0150.

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Length: 32 pages
Date of creation: Oct 2013
Date of revision:
Handle: RePEc:dls:wpaper:0150
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  1. Máximo Torero & Lorena Alcazar & Eduardo Nakasone, 2007. "Provision of Public Services and Welfare of the Poor: Learning from an Incomplete Electricity Privatization Process in Rural Peru," Research Department Publications 3232, Inter-American Development Bank, Research Department.
  2. Goyal, Aparajita, 2010. "Information, direct access to farmers, andrural market performance in central India," Policy Research Working Paper Series 5315, The World Bank.
  3. Martha J. Bailey & William J. Collins, 2009. "Did Improvements in Household Technology Cause the Baby Boom? Evidence from Electrification, Appliance Diffusion, and the Amish," NBER Working Papers 14641, National Bureau of Economic Research, Inc.
  4. Molly Lipscomb & A. Mushfiq Mobarak & Tania Barham, 2013. "Development Effects of Electrification: Evidence from the Topographic Placement of Hydropower Plants in Brazil," American Economic Journal: Applied Economics, American Economic Association, vol. 5(2), pages 200-231, April.
  5. Benjamin A. Olken, 2006. "Do Television and Radio Destroy Social Capital? Evidence from Indonesian Villages," NBER Working Papers 12561, National Bureau of Economic Research, Inc.
  6. Guido W. Imbens & Jeffrey M. Wooldridge, 2009. "Recent Developments in the Econometrics of Program Evaluation," Journal of Economic Literature, American Economic Association, vol. 47(1), pages 5-86, March.
  7. Sheetal Sekhri, 2014. "Wells, Water, and Welfare: The Impact of Access to Groundwater on Rural Poverty and Conflict," American Economic Journal: Applied Economics, American Economic Association, vol. 6(3), pages 76-102, July.
  8. Rud, Juan Pablo, 2012. "Electricity provision and industrial development: Evidence from India," Journal of Development Economics, Elsevier, vol. 97(2), pages 352-367.
  9. Escobal, Javier, 2005. "The Role of Public Infraestructure in Market Development in Rural Peru," MPRA Paper 727, University Library of Munich, Germany.
  10. Devoto, Florencia & Duflo, Esther & Dupas, Pascaline & Parienté, William & Pons, Vincent, 2011. "Happiness on Tap: Piped Water Adoption in Urban Morocco," CEPR Discussion Papers 8326, C.E.P.R. Discussion Papers.
  11. Taryn Dinkelman, 2011. "The Effects of Rural Electrification on Employment: New Evidence from South Africa," American Economic Review, American Economic Association, vol. 101(7), pages 3078-3108, December.
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