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

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  • Minoru Higa

    (Simon Fraser University)

  • Carlos Ospino

    (Labor Markets Consultant)

  • Fernando Aragon

    (Simon Fraser University)

Abstract

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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    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.
    2. Ciaschi, Matías & Fajardo-Gonzalez, Johanna & Viollaz, Mariana, 2024. "Navigating Educational Disruptions: The Gender Divide in Parental Involvement and Children's Learning Outcomes," IZA Discussion Papers 16985, Institute of Labor Economics (IZA).
    3. Viollaz Mariana & Salazar-Saenz Mauricio & Flabbi Luca & Bustelo Monserrat & Bosch Mariano, 2023. "The COVID-19 Pandemic in Latin American and Caribbean countries: Gender Differentials in Labor Market Dynamics," IZA Journal of Development and Migration, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 14(1), pages 1-57, January.
    4. Galdo, Jose C. & Contreras, Cesar & Horna, Marjorie, 2025. "The Mental Health Effects of Living near Overburdened Hospitals During COVID-19 in Perú," IZA Discussion Papers 17662, Institute of Labor Economics (IZA).
    5. Jose Carlos Saavedra & Pablo Lavado & Sebastián Lindley & Liz Villegas, 2021. "Impacto de las medidas para la mitigación de la Covid - 19 en la Salud y en la Economía para Latinoamérica y Perú," Working Papers 181, Peruvian Economic Association.
    6. Sara, Raisa, 2023. "The impact of the COVID-19 pandemic on alcohol and tobacco consumption: Evidence from Peru," Social Science & Medicine, Elsevier, vol. 325(C).

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