Abstract:
Forecasts about the effect of new technologies on labor demand are generally pessimistic. However, little is known about the current level of adoption and the effect on labor demand, particularly in developing countries. This paper exploits a recent employer survey in Peru to offer empirical evidence in these regards. Our results show that although the adoption of new technologies by firms is still incipient, it increases the labor demand of higher-skilled workers and does not affect the demand of the low-skilled. However, we find a negative effect on the demand for workers in routine manual tasks occupations. The adoption of new technologies will possibly increase in Peru. Meanwhile, it is important to keep investing in workers' skills, so they become less automatable and more productive.