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Are We Nearly There Yet?: New Technology Adoption and Labor Demand in Peru

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  • Novella, Rafael
  • Rosas-Shady, David
  • Alvarado, Alfredo

Abstract

Forecasts about the effect of new technologies on labor demand are generally pessimistic. However, little is known about the current level of adoption and the effect on labor demand, particularly in developing countries. This paper exploits a recent employer survey in Peru to offer empirical evidence in these regards. Our results show that although the adoption of new technologies by firms is still incipient, it increases the labor demand of higher-skilled workers and does not affect the demand of the low-skilled. The adoption of new technologies will possibly increase in Peru, but, in the meantime, there is still chance for investing in workers’ skills, so they become less automatable and more productive.

Suggested Citation

  • Novella, Rafael & Rosas-Shady, David & Alvarado, Alfredo, 2019. "Are We Nearly There Yet?: New Technology Adoption and Labor Demand in Peru," IDB Publications (Working Papers) 9765, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:9765
    DOI: http://dx.doi.org/10.18235/0001837
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    Cited by:

    1. is not listed on IDEAS
    2. Md. Azizur RAHMAN & Salma AKTER, 2024. "The transformative role of AI in reshaping employment trends across South Asia," Romanian Journal of Economics, Institute of National Economy, vol. 59(2(68)), pages 48-71, December.
    3. Qu, Yingzi & Fan, Sha, 2024. "Is there a "Machine Substitution"? How does the digital economy reshape the employment structure in emerging market countries," Economic Systems, Elsevier, vol. 48(4).
    4. Yang Shen & Xiuwu Zhang, 2024. "The impact of artificial intelligence on employment: the role of virtual agglomeration," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-14, December.
    5. Yang Shen, 2024. "Future jobs: analyzing the impact of artificial intelligence on employment and its mechanisms," Economic Change and Restructuring, Springer, vol. 57(2), pages 1-33, April.

    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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