(Pontificia Universidad Católica del Perú, 2023-11-28) Nuñez, Roy; Arceo-Gomez, Eva Olimpia
International remittances are a relevant source of income in developing countries, with important implications for the labour market of recipient countries. Peruvian international migration is a particular case of Latin America, since it tends to be concentrated in middle-and high-income households and in highly educated people, who display particular preferences in relation to the labour market. Using data from 2004 to 2019, we analysed the impact of remittances on employment, hours worked, and wages of Peruvian workers. Our results show that remittances reduce labour participation by 9.8 percentage points (pp). On average, the effect is greater among dependent workers than self-employed workers (-7.5 pp versus -3 pp). Similarly, we observed an increase in hourly income in both types of work (10.1% and 65%, respectively). In this sense, the Peruvian case offers a new perspective on the effect of remittances on the labour market, where despite having most of its labour force in informal jobs and self-employment, it does not encourage employment in those sectors, as occurred in previous studies.
(Pontificia Universidad Católica del Perú, 2023-12-29) Galarza Arellano, Francisco B.
There is a growing literature on the importance of adults’ financial education, especially in developed countries. The literature is less abundant when it comes to assessing the effect of financial education programs on the individuals’ financial knowledge and behavior, particularly in developing countries. This article evaluates the effect of Gestionando mis finanzas (GMF) on the financial knowledge and skills of college students in Peru. With a duration of one month, this virtual course of basic financial education was very effective in increasing the financial knowledge of the students. In addition to an increase by 0.96 standard deviations in the financial knowledge score, GMF had considerable effects on the self-perception of financial knowledge and mathematical skills, as well as on savings behavior. The effects on other aspects of financial behavior, such as price comparison before purchasing, price bargaining, and budgeting, were modest. I did not find any differential effect by sex, but I did observe a greater financial learning in students from higher socioeconomic levels.
