The persistent effects of COVID-19 on labour outcomes: evidence from Peru

This paper takes a new look at the impact of COVID-19 on labour outcomes more than a year after the beginning of the pandemic. We use a labour survey from Lima, Peru, with monthly data from January 2019 up to June 2021. We corroborate the early dramatic impact of the pandemic documented in other countries. These initial effects attenuate over time, but persist and remain sizable: even by mid-2021, there is a reduction of almost 20% in hours worked and labour income. Our findings highlight the limitation of policy changes and societal adaptations to ameliorate the economic impact of COVID-19.

Automated summary

This paper takes a new look at the impact of COVID-19 on labor outcomes and finds that the pandemic has had a significant and persistent effect on labor outcomes in Lima, Peru.