Can Higher Education Reduce Social Disparities in Vulnerability to Precarious Work? Evidence from Peru

• In Event: Organizations, Occupations, and Work Section Roundtables
  In Refereed Roundtable (90 minute): Table 13: Precarious Work Contexts

Abstract

Precarious work (PW) refers to employment that is uncertain, unstable, and insecure from the worker’s perspective. PW is characterized by low income, limited benefits, weak unionization, and job instability. PW has attracted growing scholarly attention due to its negative consequences (for life planning, health, and equity) and its global expansion. Prior research identifies socio-demographic and occupational factors that influence vulnerability to PW. Higher education is identified as a key factor in reducing vulnerability to PW. Nevertheless, few studies examine whether it also mitigates social disparities in the vulnerability to multiple aspects of PW, and existing findings are mixed. Therefore, this study investigates whether higher education influences the effects of socio-demographic factors on vulnerability to PW in Peru. This influence is tested through statistical moderation analysis. Using data from the 2023 Peruvian National Household Survey (ENAHO; n = 40,314), I estimate binary logistic regression models predicting four PW aspects: lack of minimum legal wage, non-standard weekly work schedule, absence of workplace health insurance, and lack of collective worker representation. Interaction terms test whether gender, age (65+ vs. 31-64), and disability gaps differ between workers with and without higher education. Moderation is further evaluated via predictive margins and pairwise comparisons of average marginal effects. Results indicate that higher education substantially reduces gender and age gaps in specific PW features, with decreases of 30-50% in vulnerability to minimum wage noncompliance and non-standard schedules. Additionally, age gaps in lacking employer-provided health insurance are eliminated and slightly reversed. However, higher education does not meaningfully reduce disability-related gaps. These findings contribute to the discussion on the mixed effects of higher education in reducing social disparities. They clarify where and to what extent higher education influences PW vulnerability. Likewise, they provide a nuanced understanding of higher education for targeted interventions aimed at promoting equal labor-market opportunities.

Author

• Luis Enrique Rondan-Vasquez, University of Florida