Informality and Productivity in the Labor Market in Peru

This article analyzes the evolution of informal employment in Peru from 1986 to 2001. Contrary to what one would expect, the informality rates increased steadily during the 1990s despite the introduction of flexible contracting mechanisms, a healthy macroeconomic recovery, and tighter tax codes and...

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Main Authors: Chong, Alberto, Galdo, Jose, Saavedra, Jaime
Format: Journal Article
Language:EN
Published: 2012
Subjects:
Online Access:http://hdl.handle.net/10986/5525
id okr-10986-5525
recordtype oai_dc
spelling okr-10986-55252021-04-23T14:02:22Z Informality and Productivity in the Labor Market in Peru Chong, Alberto Galdo, Jose Saavedra, Jaime Informal Economy Underground Economy E260 Fertility Family Planning Child Care INTERDISCIPLINARY RESEARCH AREAS :: Children Youth J130 Human Capital Skills Occupational Choice Labor Productivity J240 Labor Law K310 Economic Development: Human Resources Human Development Income Distribution Migration O150 Formal and Informal Sectors Shadow Economy Institutional Arrangements O170 This article analyzes the evolution of informal employment in Peru from 1986 to 2001. Contrary to what one would expect, the informality rates increased steadily during the 1990s despite the introduction of flexible contracting mechanisms, a healthy macroeconomic recovery, and tighter tax codes and regulation. We explore different factors that may explain this upward trend including the role of labor legislation and labor allocation between/within sectors of economic activity. Finally, we illustrate the negative correlation between productivity and informality by evaluating the impacts of the Youth Training PROJOVEN Program that offers vocational training to disadvantaged young individuals. We find significant training impacts on the probability of formal employment for both males and females. 2012-03-30T07:33:15Z 2012-03-30T07:33:15Z 2008 Journal Article Journal of Economic Policy Reform 17487870 http://hdl.handle.net/10986/5525 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article Peru
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language EN
topic Informal Economy
Underground Economy E260
Fertility
Family Planning
Child Care
INTERDISCIPLINARY RESEARCH AREAS :: Children
Youth J130
Human Capital
Skills
Occupational Choice
Labor Productivity J240
Labor Law K310
Economic Development: Human Resources
Human Development
Income Distribution
Migration O150
Formal and Informal Sectors
Shadow Economy
Institutional Arrangements O170
spellingShingle Informal Economy
Underground Economy E260
Fertility
Family Planning
Child Care
INTERDISCIPLINARY RESEARCH AREAS :: Children
Youth J130
Human Capital
Skills
Occupational Choice
Labor Productivity J240
Labor Law K310
Economic Development: Human Resources
Human Development
Income Distribution
Migration O150
Formal and Informal Sectors
Shadow Economy
Institutional Arrangements O170
Chong, Alberto
Galdo, Jose
Saavedra, Jaime
Informality and Productivity in the Labor Market in Peru
geographic_facet Peru
relation http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description This article analyzes the evolution of informal employment in Peru from 1986 to 2001. Contrary to what one would expect, the informality rates increased steadily during the 1990s despite the introduction of flexible contracting mechanisms, a healthy macroeconomic recovery, and tighter tax codes and regulation. We explore different factors that may explain this upward trend including the role of labor legislation and labor allocation between/within sectors of economic activity. Finally, we illustrate the negative correlation between productivity and informality by evaluating the impacts of the Youth Training PROJOVEN Program that offers vocational training to disadvantaged young individuals. We find significant training impacts on the probability of formal employment for both males and females.
format Journal Article
author Chong, Alberto
Galdo, Jose
Saavedra, Jaime
author_facet Chong, Alberto
Galdo, Jose
Saavedra, Jaime
author_sort Chong, Alberto
title Informality and Productivity in the Labor Market in Peru
title_short Informality and Productivity in the Labor Market in Peru
title_full Informality and Productivity in the Labor Market in Peru
title_fullStr Informality and Productivity in the Labor Market in Peru
title_full_unstemmed Informality and Productivity in the Labor Market in Peru
title_sort informality and productivity in the labor market in peru
publishDate 2012
url http://hdl.handle.net/10986/5525
_version_ 1764395365743722496