Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/243466 
Year of Publication: 
2021
Series/Report no.: 
IZA Policy Paper No. 180
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
Peru's national policy on productivity and competitiveness relies on the Global Competitiveness Index (GCI) by the World Economic Forum. We analyze the subjective component of GCI and show that, in the labor market area, this index has been largely constructed with opinion data coming from a particular group of the business sector. The opinion data is based on a survey of 98 business executives, which mainly represent firms with 100 or more employees and account for only 1% of total firms in Peru. Further, the questionnaire exhibits obvious flaws, and the underlying viewpoint that less employment protection promotes productive and formal work is not aligned with the evidence. Thus, we do not find that GCI provides a solid base for policy advice.
Subjects: 
labor markets
competitiveness
subjective data
JEL: 
J08
J32
O43
Document Type: 
Working Paper

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