Abstract
Labor mobility is essential for structural transformation and economic growth. We investigate the heterogenous welfare effects of temporary labor mobility to different geographical and sectoral destinations in Peru, using nationwide panel-data (2017–2019) from 5,276 rural households. Estimated welfare gains are positive for labor mobility to rural, peri-urban and urban destinations, and decrease along the income distribution. Labor mobility to the non-farm food sector has lower welfare gains than mobility to agricultural or non-agrifood sectors. Our findings underline the importance of looking beyond rural–urban mobility in research and policies, as mobility to rural and agricultural destinations improves rural welfare.
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