Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/234680 
Year of Publication: 
2019
Series/Report no.: 
IDB Working Paper Series No. IDB-WP-01093
Publisher: 
Inter-American Development Bank (IDB), Washington, DC
Abstract: 
This paper studies the impact of import competition from China on informality and wages in the Peruvian manufacturing sector in 20012010. 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 being hired in the informal sector and on wages in both the formal and informal sectors. The results suggest that greater import competition increased the chances of working in the informal sector among workers with only elementary educationarguably one of the less-skilled groups. Regarding the impact on real wages, we find that the increase in imports from China was also detrimental to the least-educated workers (those with an elementary-level education or no education at all). The evidence is more mixed among better-educated workers in the formal sector: their wages improved, but the result is only significant once industry output growth is accounted for.
Subjects: 
import competition
informality
wages
JEL: 
F14
F16
J23
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Working Paper

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