Volumen 44 Número 88 (2021)

Permanent URI for this collectionhttp://54.81.141.168/handle/123456789/186802

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SPECIAL: Preferential Trade Agreements, Trade and Multilateral Liberalization
  • Presentation Garcia, Luis; Tovar, Patricia
  • Trade Creation and Diversion Effects under the Free Trade Agreement between Peru and the United States: A Gravitational Analysis Arrieta Padilla, Gabriel Lewis; 1-22
  • Do preferential trade agreements favor the liberalization of trade with non-members? The case of the Andean Community Castillo Thorne, Lakshmi Isabel; 23-44
  • Import competition in the manufacturing sector in Peru: Its impact on informality and wages Morales, Fernando; Pierola, Martha Denisse; Sanchez-Navarro, Dennis; 45-75

    • Articles
  • Conditional vs Unconditional Quantile Regression Models: A Guide to Practitioners Alejo, Javier; Favata, Federico; Montes-Rojas, Gabriel; Trombetta, Martín; 76-93

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      Import competition in the manufacturing sector in Peru: Its impact on informality and wages
      (Pontificia Universidad Católica del Perú, 2021-12-16) Morales, Fernando; Pierola, Martha Denisse; Sanchez-Navarro, Dennis
      This paper studies the impact of import competition from China on labor outcomes in the Peruvian manufacturing sector in 2001–2010. Using data from the Peruvian Household Survey, we use a two-step procedure to evaluate the impact of the surge in imports from China on the likelihood of having an informal job and on wages in both the formal and informal sectors. On the first step, the results suggest that greater import competition increased—albeit weakly—the likelihood of having an informal job for workers with elementary education. On the second step, we find that the surge in imports from China was detrimental to wages of the least educated individuals with informal jobs—with no education and elementary education—, although we also find that this result is mostly driven by the presence of self-employed among informal workers. We also observe a wage increase among workers with formal jobs and elementary and high school education. These results are robust to the inclusion of different exclusion restrictions and even after accounting for industry-level growth which was strong during the period studied.