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The persistent effects of COVID-19 on labor outcomes: evidence from Peru


  • Minoru Higa

    (Simon Fraser University)

  • Carlos Ospino

    (Labor Markets Consultant)

  • Fernando Aragon

    (Simon Fraser University)


This paper takes a new look at the impact of COVID-19 on labor outcomes more than a year after the beginning of the pandemic. We use a labor survey from Lima, Peru, with monthly data from January 2019 up to June 2021. We corroborate the early dramatic impact of the pandemic documented in other countries. These initial effects attenuate over time, but persist and remain sizeable: even by mid-2021, there is a reduction of almost 20% in hours worked and labor income. Our findings highlight the limitation of policy changes and societal adaptations to ameliorate the economic impact of COVID-19.

Suggested Citation

  • Minoru Higa & Carlos Ospino & Fernando Aragon, 2021. "The persistent effects of COVID-19 on labor outcomes: evidence from Peru," Discussion Papers dp21-10, Department of Economics, Simon Fraser University.
  • Handle: RePEc:sfu:sfudps:dp21-10

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    References listed on IDEAS

    1. Betcherman,Gordon & Giannakopoulos,Nicholas & Laliotis,Ioannis & Pantelaiou,Ioanna & Testaverde,Mauro & Tzimas,Giannis, 2020. "Reacting Quickly and Protecting Jobs : The Short-Term Impacts of the COVID-19 Lockdown on the Greek Labor Market," Policy Research Working Paper Series 9356, The World Bank.
    2. Kikuchi, Shinnosuke & Kitao, Sagiri & Mikoshiba, Minamo, 2021. "Who suffers from the COVID-19 shocks? Labor market heterogeneity and welfare consequences in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 59(C).
    3. Hoehn-Velasco, Lauren & Silverio-Murillo, Adan & Balmori de la Miyar, Jose Roberto, 2021. "The long downturn: The impact of the great lockdown on formal employment," Journal of Economics and Business, Elsevier, vol. 115(C).
    4. Majlesi, Kaveh, 2016. "Labor market opportunities and women's decision making power within households," Journal of Development Economics, Elsevier, vol. 119(C), pages 34-47.
    5. Mukesh Eswaran & Nisha Malhotra, 2011. "Domestic violence and women's autonomy in developing countries: theory and evidence," Canadian Journal of Economics, Canadian Economics Association, vol. 44(4), pages 1222-1263, November.
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    Cited by:

    1. Mariana Viollaz & Mauricio Salazar-Saenz & Luca Flabbim & Monserrat Bustelo & Mariano Bosch, 2022. "The COVID-19 Pandemic in Latin American and Caribbean countries: The Labor Supply Impact by Gender," CEDLAS, Working Papers 0296, CEDLAS, Universidad Nacional de La Plata.

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