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IZA Discussion Paper No. 16671
December 2023
Does Turnover Inhibit Specialization? Evidence from a Skill Survey in Peru
Andrea Atencio-De-Leon, Munseob Lee, Claudia Macaluso

published in: American Economic Review: Insights, 2025, 7 (1), 56–70

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.

Kommunikation
Mark Fallak
mark.fallak@liser.lu
+352 585-855-526
World of Labour
Olga Nottmeyer
olga.nottmeyer@liser.lu
+352 585-855-501
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Christina Gathmann
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Das IZA@LISER-Netzwerk ist eine weltweite Gemeinschaft für exzellente Forschung in der Arbeitsmarktökonomie und angrenzenden Fachgebieten. Nach dem Wechsel von Bonn wird das Netzwerk nun am Luxembourg Institute of Socio-Economic Research (LISER) koordiniert.

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