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Are labour inspections effective when labour regulations vary according to the size of the firm? Evidence from Peru

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  • Mariana VIOLLAZ

Abstract

This article analyses the impact of enforcement of four labour standards (pension system enrolment, minimum wage, maximum weekly working hours and written employment contract) on compliance in Peru, where labour regulations and penalties vary according to firm size. The author uses household survey data to analyse a factor not previously studied – adjustment by firms through downsizing to benefit from lower fines and less stringent regulations. The empirical findings indicate that enforcement efforts have little effect on either the degree of compliance or the size of firms.

Suggested Citation

  • Mariana VIOLLAZ, 2018. "Are labour inspections effective when labour regulations vary according to the size of the firm? Evidence from Peru," International Labour Review, International Labour Organization, vol. 157(2), pages 213-242, June.
    • Handle: RePEc:bla:intlab:v:157:y:2018:i:2:p:213-242
    DOI: 10.1111/ilr.12107
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    References listed on IDEAS

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    20. repec:fth:prinin:455 is not listed on IDEAS
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    Cited by:

    1. Mariana Viollaz, 2019. "Multiple Violations of Labor Market Regulations: Patterns in the Peruvian Labor Market and the Impact of Enforcement," CEDLAS, Working Papers 0244, CEDLAS, Universidad Nacional de La Plata.
    2. Ronconi, Lucas & Raphael, Steven, 2024. "Measuring Effective Labor Regulation in the Less Developed World: Recent Advances and Challenges Ahead," IZA Policy Papers 210, Institute of Labor Economics (IZA).

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