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Does Turnover Inhibit Specialization? Evidence from a Skill Survey in Peru

Andrea Atencio- De-Leon, Munseob Lee and Claudia Macaluso

No 10844, CESifo Working Paper Series from CESifo

Abstract: We design, pilot, and field a new survey of occupational skills in Peru, to investigate human capital differences between poor and rich countries. Though the average skill level is comparable, Peruvian jobs have markedly more uniform skill profiles than jobs in the US. However, matching frictions are no more severe than in the US, and recruiting technology is largely equivalent as well. A model with complementarities in production offers a plausible explanation. Uncertainty about labor availability, more pronounced in poor countries' turbulent labor markets, destabilizes production. This generates an endogenous labor demand preference for unspecialized workers.

Keywords: cross-country productivity differences; human capital; labor reallocation (search for similar items in EconPapers)
JEL-codes: E24 O11 O47 (search for similar items in EconPapers)
Date: 2023
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Journal Article: Does Turnover Inhibit Specialization? Evidence from a Skill Survey in Peru (2025) Downloads
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