Labor Market Reforms and Their Impact on Formal Labor Demand and Job Market Turnover: The Case of Peru

This paper analyzes the effects of several aspects of labor legislation that were modified through successive waves of reform since 1991. Firing costs diminished sharply through the progressive elimination of job security regulations, the introduction of temporary contracts and changes in the severance payment structure. Simultaneously, non-wage labor costs increased. This paper assesses the effect of these changes on the level of formal employment, the effect of regulations changes on turnover, and compares employment duration data for the formal and informal sectors using empirical hazards and parametric estimations of hazard functions.

Bibliographic Details

Main Author:	Inter-American Development Bank
Other Authors:	Jaime Saavedra-Chanduví
Format:	Working Papers biblioteca
Language:	English
Published:	Inter-American Development Bank
Subjects:	Labor Policy, Workforce and Employment, labor supply;labor demand;labor turnover;job security;labor law,
Online Access:	http://dx.doi.org/10.18235/0011243 https://publications.iadb.org/en/labor-market-reforms-and-their-impact-formal-labor-demand-and-job-market-turnover-case-peru
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