Policies to promote employment and preserve cultural heritage in the handicraft sector

For many countries around the world, the handicraft sector has served as a means of maintaining and promoting cultural and artistic traditions. It has also been an important source of employment and income. However, the contributions of this sector to total employment and income are not well understood. In this paper, we present data on employment in the handicraft sector in a number of countries in the developing world. We find evidence that this sector employs over 10% of the labor force in many countries, and that further documentation of this employment is needed in order to design policies to maximize opportunities in this sector. We also identify policies that governments can undertake to preserve the cultural heritage embodied in handicrafts and to promote the export of these products. The importance of these policy recommendations is highlighted with the case of Peru, which has faced considerable import competition in the handicraft sector in recent years.