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

Miguel Benitez-Rueda, Nicolás Domínguez and Eric Parrado ()

No 12823, IDB Publications (Working Papers) from Inter-American Development Bank

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.

Keywords: Automation; Mobility Restrictions; Labor markets; Occupationalmobility; jobs (search for similar items in EconPapers)
JEL-codes: J21 J46 J62 O33 (search for similar items in EconPapers)
Date: 2023-04
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Persistent link: https://EconPapers.repec.org/RePEc:idb:brikps:12823

DOI: 10.18235/0004864

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