Education and Earning in Peru's Informal Nonfarm Family Enterprises. Living Standards Measurement Study Working Paper No. 64

Data from the 1985 Living Standards Survey in Peru were studied in this analysis of non-farm family businesses from the informal sector in order to categorize 2,735 family enterprises and to explain the earnings per hour of family labor. Most of the existing research on the self-employed uses the in...

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Bibliographic Details
Main Author Moock, Peter
Format Report
LanguageEnglish
Published World Bank, Publications Sales Unit, Dept 1990
Subjects
Developing Nations
Economic Factors
Education Work Relationship
Entrepreneurship
Higher Education
Living Standards
Outcomes of Education
Research Projects
Self Employment
Womens Studies
Peru
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Summary:Data from the 1985 Living Standards Survey in Peru were studied in this analysis of non-farm family businesses from the informal sector in order to categorize 2,735 family enterprises and to explain the earnings per hour of family labor. Most of the existing research on the self-employed uses the individual as the unit of analysis; however, this study uses the enterprise as the unit of analysis and asks whether schooling makes a difference in family income. Generally these businesses are loosely organized, pay no taxes, and employ a large segment of the Peruvian working sector. Regression analyses show significant effects of schooling on earnings. Returns differed markedly among four sub-sectors and by gender and by location (Lima, other cities, rural). The results were consistent with education being valueless in traditional activities but having a positive effect in jobs requiring literacy, numeracy, and adjustment to change. Post secondary education had a fairly high and significant pay off in urban areas for both women and men. A 20-item bibliography and 11 tables of statistical data are included. (NL)
ISBN:0821314408
9780821314401