Publication:
Peru : Trajectories towards Formality

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dc.contributor.authorWorld Bank
dc.date.accessioned2013-03-25T16:31:52Z
dc.date.available2013-03-25T16:31:52Z
dc.date.issued2008-06-16
dc.description.abstractThis report is the outcome of very close cooperation with the authorities of the Government of Peru. The authorities have been involved in all stages of the process, going back to the first phase of this programmatic study. The authorities proved instrumental in helping design the focus of this report, including the scope of a survey of businesses conducted for this study, the survey questionnaire itself, they also suggested specific topics to be explored, which are presented throughout the report mainly in the form of boxes. This report focuses on the trajectories towards formality of micro and small businesses, drawing insight by polling those businesses directly. The study finds no significant impact of certain characteristics of formality, such as having a municipal license or being registered with the tax authorities, on the profitability of businesses or on their probability of obtaining a loan. These results must be accompanied, however, by the caveat that establishing the impact of informality econometrically is notoriously difficult. The methodology used in this report does not attempt to capture the negative effects that informality may have on the performance of formal firms, or the effects that informality may have in undermining social trust and the overall business environment. The study also finds informality to be particularly persistent in the area of labor relations and access to pension, driven largely by high costs of being formal, limited enforcement of labor relations, and a preference for flexible labor relations. These two findings combined suggest that: (i) efforts to increase the access to health insurance and pension coverage of workers through a shift from informal arrangements to existing formal labor relations will prove difficult; and (ii) alternative methods to increase access to health and pension coverage are well-worth exploring. The rest of these main findings concentrate on the conclusions of the study regarding the determinants of informality and what prompts businesses to move towards formality.en
dc.identifierhttp://documents.worldbank.org/curated/en/2008/06/16373406/peru-trajectories-towards-formality
dc.identifier.doi10.1596/12897
dc.identifier.urihttps://hdl.handle.net/10986/12897
dc.languageEnglish
dc.language.isoen_US
dc.publisherWashington, DC
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCESS TO CREDIT
dc.subjectACCESS TO FINANCE
dc.subjectACCOUNTANT
dc.subjectACCOUNTING
dc.subjectADVISORY SERVICE
dc.subjectAVAILABILITY OF DATA
dc.subjectBANK ACCOUNTS
dc.subjectBANKS
dc.subjectBARRIER
dc.subjectBID
dc.subjectBINDING CONSTRAINT
dc.subjectBORROWING
dc.subjectBRIBES
dc.subjectBROAD ACCESS
dc.subjectBUREAUCRATIC OBSTACLES
dc.subjectBUSINESS ASSOCIATION
dc.subjectBUSINESS ENVIRONMENT
dc.subjectBUSINESS INDICATORS
dc.subjectBUSINESS NEEDS
dc.subjectBUSINESS OPPORTUNITIES
dc.subjectBUSINESS PERFORMANCE
dc.subjectBUSINESS SERVICES
dc.subjectBUSINESSES
dc.subjectCAPITAL INVESTMENT
dc.subjectCENTRAL BANK
dc.subjectCHECKS
dc.subjectCLIENT BASE
dc.subjectCOMPETITIVENESS
dc.subjectCOMPLIANCE COSTS
dc.subjectCONTRIBUTORY SYSTEM
dc.subjectCREDIBILITY
dc.subjectCREDIT CARDS
dc.subjectCREDITORS
dc.subjectCURRENCY
dc.subjectCUSTOMER BASE
dc.subjectDEVELOPMENT BANK
dc.subjectDISMISSAL
dc.subjectDISMISSED WORKER
dc.subjectDRIVERS
dc.subjectEARNING
dc.subjectECONOMIC ACTIVITIES
dc.subjectECONOMIC ACTIVITY
dc.subjectECONOMIC AGENTS
dc.subjectECONOMIC GROWTH
dc.subjectEMPLOYER
dc.subjectEMPLOYMENT
dc.subjectEMPLOYMENT PROMOTION
dc.subjectENTERPRISE PROMOTION
dc.subjectENTREPRENEUR
dc.subjectENTREPRENEURS
dc.subjectEXCLUSION
dc.subjectEXPORT PROMOTION
dc.subjectFACE VALUE
dc.subjectFINANCE CORPORATION
dc.subjectFINANCIAL DEPTH
dc.subjectFIRING COSTS
dc.subjectFIRM SIZE
dc.subjectFOREIGN INVESTMENT
dc.subjectGEOGRAPHICAL AREA
dc.subjectGREATER ACCESS
dc.subjectGROSS DOMESTIC PRODUCT
dc.subjectGROSS NATIONAL PRODUCT
dc.subjectHEALTH INSURANCE
dc.subjectHOME OWNERSHIP
dc.subjectHOUSEHOLD SURVEY
dc.subjectID
dc.subjectINCOME
dc.subjectINCOME LEVELS
dc.subjectINCOME TAX
dc.subjectINCOMES
dc.subjectINFORMAL EMPLOYMENT
dc.subjectINFORMAL SECTOR
dc.subjectINFORMAL WORKER
dc.subjectINSPECTION
dc.subjectINSPECTIONS
dc.subjectINTELLECTUAL PROPERTY
dc.subjectINTERNATIONAL FINANCE
dc.subjectINVESTING
dc.subjectINVESTMENT CLIMATE
dc.subjectJUDICIAL SYSTEM
dc.subjectKEY BENEFIT
dc.subjectKNOWLEDGE BASE
dc.subjectLABOR FORCE
dc.subjectLABOR LAWS
dc.subjectLABOR LEGISLATION
dc.subjectLABOR MARKET
dc.subjectLABOR ORGANIZATION
dc.subjectLABOR REGULATION
dc.subjectLABOR REGULATIONS
dc.subjectLABOR RELATIONS
dc.subjectLACK OF ACCESS
dc.subjectLAW ENFORCEMENT
dc.subjectLEGAL DISPUTES
dc.subjectLEGAL REQUIREMENT
dc.subjectLICENSE
dc.subjectLICENSE FEE
dc.subjectLICENSES
dc.subjectLIMITED LIABILITY
dc.subjectLIVING STANDARDS
dc.subjectLOAN
dc.subjectMANUFACTURING
dc.subjectMARKET ACCESS
dc.subjectMARKET OPPORTUNITIES
dc.subjectMEDIUM ENTERPRISES
dc.subjectMICRO BUSINESS
dc.subjectMICRO BUSINESSES
dc.subjectMICRO ENTERPRISE
dc.subjectMICRO ENTERPRISES
dc.subjectMICRO ENTREPRENEURS
dc.subjectMICRO-ENTREPRENEURS
dc.subjectMINIMUM WAGE
dc.subjectMINIMUM WAGES
dc.subjectMONETARY FUND
dc.subjectNEW BUSINESS
dc.subjectOPPORTUNISTIC BEHAVIOR
dc.subjectPAYMENT OF TAXES
dc.subjectPENSION
dc.subjectPENSION SYSTEM
dc.subjectPENSIONS
dc.subjectPERFORMANCE MEASURES
dc.subjectPRIVATE SECTOR
dc.subjectPROBIT REGRESSION
dc.subjectPROCUREMENT
dc.subjectPRODUCTIVITY
dc.subjectPROFITABILITY
dc.subjectPUBLIC SERVICES
dc.subjectQUERIES
dc.subjectRECEIPTS
dc.subjectREGISTRY
dc.subjectREGULAR PAYMENT
dc.subjectREGULATORY ENVIRONMENT
dc.subjectREGULATORY FRAMEWORK
dc.subjectREGULATORY FRAMEWORKS
dc.subjectREGULATORY REGIME
dc.subjectRESERVE
dc.subjectRESERVE BANK
dc.subjectRESULT
dc.subjectRESULTS
dc.subjectRETAIL ACTIVITIES
dc.subjectRETAIL SALES
dc.subjectRISK FACTOR
dc.subjectRULE OF LAW
dc.subjectSALARIED WORKERS
dc.subjectSELF-EMPLOYMENT
dc.subjectSERVICE PROVIDERS
dc.subjectSEVERANCE PAYMENTS
dc.subjectSMALL BUSINESS
dc.subjectSMALL BUSINESS OWNER
dc.subjectSMALL BUSINESS OWNERS
dc.subjectSMALL BUSINESSES
dc.subjectSMALL ENTERPRISE
dc.subjectSMALL ENTERPRISES
dc.subjectSMALL ENTREPRENEUR
dc.subjectSMALL ENTREPRENEURS
dc.subjectSOCIAL PROTECTION
dc.subjectSOCIAL PROTECTIONS
dc.subjectSOURCE OF INFORMATION
dc.subjectSOURCES OF FINANCE
dc.subjectSTART-UP
dc.subjectSTART-UP CAPITAL
dc.subjectSUPERVISION
dc.subjectSUPPLIERS
dc.subjectTAX BURDEN
dc.subjectTAX CODES
dc.subjectTAX RATE
dc.subjectTAX REGIME
dc.subjectTAX REGIMES
dc.subjectTECHNICAL ASSISTANCE
dc.subjectTERMS OF LOAN
dc.subjectTURNOVER
dc.subjectUNSKILLED LABOR
dc.subjectURBAN AREAS
dc.subjectVOUCHERS
dc.subjectWAGE RATES
dc.subjectWEAK ENFORCEMENT
dc.subjectWORKER
dc.subjectWORKERS
dc.titlePeru : Trajectories towards Formalityen
dspace.entity.typePublication
okr.crosscuttingsolutionareaJobs
okr.date.disclosure2012-06-13
okr.date.doiregistration2025-05-07T10:10:01.992489Z
okr.doctypeEconomic & Sector Work::General Economy, Macroeconomics and Growth Study
okr.doctypeEconomic & Sector Work
okr.docurlhttp://documents.worldbank.org/curated/en/2008/06/16373406/peru-trajectories-towards-formality
okr.globalpracticeSocial Protection and Labor
okr.globalpracticeFinance and Markets
okr.globalpracticeTransport and ICT
okr.globalpracticeTrade and Competitiveness
okr.guid592411468294325794
okr.identifier.externaldocumentum000333037_20120613233432
okr.identifier.internaldocumentum16373406
okr.identifier.report43737
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2012/06/13/000333037_20120613233432/Rendered/PDF/437370ESW0P1060formality0II000final.pdfen
okr.peerreviewAcademic Peer Review
okr.region.administrativeLatin America and Caribbean
okr.region.countryPeru
okr.sectorPublic Administration, Law, and Justice
okr.sectorIndustry and trade
okr.sectorFinance
okr.sectorAgriculture, fishing, and forestry
okr.themeEconomic management :: Macroeconomic management
okr.themeEconomic management :: Analysis of economic growth
okr.topicPrivate Sector Development::E-Business
okr.topicSocial Protections and Labor::Labor Markets
okr.topicFinance and Financial Sector Development::Debt Markets
okr.topicPrivate Sector Development::Emerging Markets
okr.topicFinance and Financial Sector Development::Access to Finance
okr.unitEconomic Policy Sector (LCSPE)
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