Labor Market Reforms and Their Impact over Formal Labor Demand and Job Market Turnover. The Case of Peru

摘要: This paper analyzes the effects of several aspects labor legislation that were modified through successive waves reform since 1991. Firing costs diminished sharply progressive elimination job security regulations, introduction temporary contracts and changes in severance payment structure. Simultaneously, non-wage increased. To assess effect these on level formal employment, we estimate demand functions. We use a pseudo-panel data set for ten sectors observed bimonthly between 1987 1997 panel sets at establishment three sub-periods. Both sector level, have negative significant demand. The coefficient our measure firing costs, expected payments, is significant, its magnitude decreases post period. After reforms, price output elasticities are larger there evidence speedier adjustment. regulations turnover series repeated cross sections household surveys Metropolitan Lima calculate mean tenure using censored data. find fell 1992. fall more statistically salaried workers than informal workers. Using complete employment spells from Peruvian Living Standards Measurement Surveys compare duration empirical hazards parametric estimations hazard an increase function wage earners relative to earners. higher informal, private, blue-collar