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A Downward‐Sloping Labor Supply Curve: The Case of Peru

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  • Gustavo Yamada

Abstract

The author finds evidence of a downward‐sloping labor supply curve for urban areas in Peru from cross‐sectional household data for 2002 and pooled data for available years from 1985 to 2000. Individuals respond to lower hourly earnings with an increase in the quantity supplied of work hours. This behavior would help to explain the increasing trend in average work hours in Peru (this average for male workers in Lima, the capital city, rose from 50.5 to 53.9 weekly hours between 1985 and 2000; meanwhile, 33.4% of workers had weekly schedules above 60 hours in 2002). Another finding is the increase in hours supplied due to pressure from the more numerous cohorts recently entering the Peruvian labor market.

Suggested Citation

  • Gustavo Yamada, 2008. "A Downward‐Sloping Labor Supply Curve: The Case of Peru," Review of Development Economics, Wiley Blackwell, vol. 12(4), pages 737-750, November.
    • Handle: RePEc:bla:rdevec:v:12:y:2008:i:4:p:737-750
    DOI: 10.1111/j.1467-9361.2008.00469.x
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    References listed on IDEAS

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    1. Gustavo Gonzaga & Ana Flavia Machado & Danielle CArusi Machado, 2003. "Horas de trabalho: efeitos idade, período e coorte," Textos para discussão 473, Department of Economics PUC-Rio (Brazil).
    2. Gustavo Gonzaga & Phillippe Leite & Danielle Carusi Machado, 2003. "Quem trabalha muito e quem trabalha pouco no Brasil?," Textos para discussão 471, Department of Economics PUC-Rio (Brazil).
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    Cited by:

    1. Nikita Céspedes Reynaga & Silvio Rendon, 2012. "The Frisch Elasticity in Labor Markets with high Job Turnover," Department of Economics Working Papers 12-13, Stony Brook University, Department of Economics.
    2. Céspedes, Nikita & Rendón, Silvio, 2012. "La elasticidad de oferta laboral de Frisch en economías con alta movilidad laboral," Working Papers 2012-017, Banco Central de Reserva del Perú.

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