Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/267429 
Year of Publication: 
2022
Series/Report no.: 
IZA Discussion Papers No. 15692
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We investigate the labor market effects of putting bounds to domestic outsourcing in Peru. A series of difference-in-differences specifications for individuals with high versus low predicted propensities to be outsourced show evidence of non-negative labor market effects. Limiting domestic outsourcing increases labor force participation by 1.5 percentage points and employment by 2.3 percentage points while it reduces unemployment by 0.8 percentage points, but has no statistically significant impact on labor formality nor real wages. Our results suggest that a policy of restricting outsourcing does neither destruct jobs nor does it improve workers' labor market conditions in the short-run.
Subjects: 
domestic outsourcing
employment
JEL: 
J21
J48
E24
Document Type: 
Working Paper

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