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Mobility Restrictions and Automation in the Developing World: Evidence from Peru's Labor Market

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  • Benitez-Rueda, Miguel
  • Domínguez, Nicolás
  • Parrado, Eric

Abstract

Mobility restrictions have the potential to accelerate automation. Using difference-in-differences and triple-differences empirical strategies, and leveraging cross-industry variation in mobility restrictions and within-industry variations in automation risk, this paper estimates the impact of pandemic-related restrictions on automation in Peru. Our results indicate that mobility restrictions significantly decreased employment rates (22.5%) and hourly wages (74.1%) for workers in highly automatable jobs up to 18 months after the shock. These effects were particularly pronounced among women, small and medium-sized firms, informal workers, and individuals with low and medium skill levels working in manufacturing, construction, and services. Evidence suggests that occupational mobility from high-risk to low-risk jobs drove recovery afterwards.

Suggested Citation

  • Benitez-Rueda, Miguel & Domínguez, Nicolás & Parrado, Eric, 2023. "Mobility Restrictions and Automation in the Developing World: Evidence from Peru's Labor Market," IDB Publications (Working Papers) 12823, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:12823
    DOI: http://dx.doi.org/10.18235/0004864
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    References listed on IDEAS

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    More about this item

    Keywords

    Automation; Mobility Restrictions; Labor markets; Occupationalmobility; jobs;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J46 - Labor and Demographic Economics - - Particular Labor Markets - - - Informal Labor Market
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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