Publication:
Pathways to Formalization: Going Beyond the Formality Dichotomy -- The Case of Peru

Simple item page
dc.contributor.authorDíaz, Juan José
dc.contributor.authorChacaltana, Juan
dc.contributor.authorRigolini, Jamele
dc.contributor.authorRuiz, Claudia
dc.date.accessioned2018-08-15T20:11:18Z
dc.date.available2018-08-15T20:11:18Z
dc.date.issued2018-08
dc.description.abstractToo often, academics and policy makers interpret formality as a binary choice and formalization as an irreversible process. Yet, formalization has many facets and shades on the business and labor fronts, and firms may not be able or willing to formalize all at once. This paper explores the joint process of business and labor formalization, using a unique panel data set of Peruvian micro enterprises. The paper finds that business formality does not imply labor formality, and vice versa. Further, there is significant churning in and out of different dimensions of formality within a relatively short period. Using an instrumental variable approach, the paper infers that business formalization affects labor formalization but not the other way around, and that enforcement is a key driver of formalization. Overall, the analysis shows that formalization is a gradual and reversible process, with small entrepreneurs weighing their possibilities in each pathway to business (often) or labor (less often) formalization, but rarely both at the same time.en
dc.identifierhttp://documents.worldbank.org/curated/en/528901534251354144/Pathways-to-formalization-going-beyond-the-formality-dichotomy-the-case-of-Peru
dc.identifier.doi10.1596/1813-9450-8551
dc.identifier.urihttps://hdl.handle.net/10986/30241
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 8551
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectINFORMALITY
dc.subjectBUSINESS FORMALIZATION
dc.subjectBUSINESS ENVIRONMENT
dc.subjectREGULATION
dc.subjectLABOR FORMALIZATION
dc.subjectSMALL AND MEDIUM ENTERPRISES
dc.subjectLABOR MARKET
dc.subjectMICROENTERPRISE
dc.titlePathways to Formalizationen
dc.title.subtitleGoing Beyond the Formality Dichotomy -- The Case of Peruen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titlePathways to Formalization: Going Beyond the Formality Dichotomy: The Case of Peru
okr.date.disclosure2018-08-14
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/528901534251354144/Pathways-to-formalization-going-beyond-the-formality-dichotomy-the-case-of-Peru
okr.guid528901534251354144
okr.identifier.doi10.1596/1813-9450-8551
okr.identifier.externaldocumentum090224b085f67166_1_0
okr.identifier.internaldocumentum30346849
okr.identifier.reportWPS8551
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/528901534251354144/pdf/WPS8551.pdfen
okr.region.administrativeLatin America & Caribbean
okr.region.countryPeru
okr.statistics.combined2152
okr.statistics.dr528901534251354144
okr.statistics.drstats1518
okr.topicPrivate Sector Development::Enterprise Development & Reform
okr.topicPrivate Sector Development::Legal Regulation and Business Environment
okr.topicPrivate Sector Development::Microenterprises
okr.topicSocial Protections and Labor::Labor Law
okr.topicSocial Protections and Labor::Labor Markets
okr.topicSocial Protections and Labor::Labor Policies
okr.unitSocial Protection and Jobs Global Practice
relation.isAuthorOfPublicationb51f7805-9174-58dc-a585-0ca1b7edbebc
relation.isAuthorOfPublication.latestForDiscoveryb51f7805-9174-58dc-a585-0ca1b7edbebc
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
Files
Original bundle
Now showing 1 - 2 of 2
Thumbnail Image
Name:
WPS8551.pdf
Size:
961.1 KB
Format:
Adobe Portable Document Format
Download
No Thumbnail Available
Name:
WPS8551.txt
Size:
82.47 KB
Format:
Plain Text
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.71 KB
Format:
Plain Text
Description:
Download
Collections
Policy Research Working Papers