Are Labor Inspections Protecting Workers’ Rights? Adding the Evidence from Size-based Labor Regulations and Fines in Peru

This paper analyzes how changes in the enforcement of labor regulations impact on the compliance rate in a context where the labor rules and the characteristics of the labor inspection system differ by firm size. In addition to the channels analyzed in the existing literature –the deterrence effect...

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Autor principal: Viollaz, Mariana
Formato: Articulo Documento de trabajo
Lenguaje:Inglés
Publicado: 2016
Materias:
Ciencias Económicas
labor regulations
labor inspections
Perú
empresas
Acceso en línea:http://sedici.unlp.edu.ar/handle/10915/65286
http://www.cedlas.econo.unlp.edu.ar/wp/wp-content/uploads/doc_cedlas205.pdf
Aporte de:
SEDICI (UNLP) de Universidad Nacional de La Plata
id I19-R120-10915-65286
record_format dspace
institution Universidad Nacional de La Plata
institution_str I-19
repository_str R-120
collection SEDICI (UNLP)
language Inglés
topic Ciencias Económicas
labor regulations
labor inspections
Perú
empresas
spellingShingle Ciencias Económicas
labor regulations
labor inspections
Perú
empresas
Viollaz, Mariana
Are Labor Inspections Protecting Workers’ Rights? Adding the Evidence from Size-based Labor Regulations and Fines in Peru
topic_facet Ciencias Económicas
labor regulations
labor inspections
Perú
empresas
description This paper analyzes how changes in the enforcement of labor regulations impact on the compliance rate in a context where the labor rules and the characteristics of the labor inspection system differ by firm size. In addition to the channels analyzed in the existing literature –the deterrence effect of labor inspections and the movement of displaced workers into the informal sector, this paper adds a margin of adjustment not analyzed before: firms can reduce their size to take advantage of lower penalties for violating the labor rules and/or less stringent regulations. I analyze empirically which forces have dominated for workers employed in firms of different size in Peru during 2008-2013. I measure the enforcement of labor regulations as the number of labor inspections per hundred workers at the regional level, and I instrument it using a measure of the arrival cost of labor inspectors to the firms. The findings reveal that the degree of enforcement had little impact on the compliance with labor regulations. The effect of firms reducing their size to enjoy lower fines and/or less stringent regulations was small in magnitude and the direction of the effect was not clear. The general lack of effect of the enforcement measure on the compliance with the labor rules indicates that the labor inspection system is not effective in Peru, either because it is not able to generate the incentives to comply with labor regulations (e.g. because of lack of resources) or because it fails to overcome the consequences of the adjustment process associated to an increase in the compliance level (e.g. displaced workers moving into the informal sector of the economy).
format Articulo
Documento de trabajo
author Viollaz, Mariana
author_facet Viollaz, Mariana
author_sort Viollaz, Mariana
title Are Labor Inspections Protecting Workers’ Rights? Adding the Evidence from Size-based Labor Regulations and Fines in Peru
title_short Are Labor Inspections Protecting Workers’ Rights? Adding the Evidence from Size-based Labor Regulations and Fines in Peru
title_full Are Labor Inspections Protecting Workers’ Rights? Adding the Evidence from Size-based Labor Regulations and Fines in Peru
title_fullStr Are Labor Inspections Protecting Workers’ Rights? Adding the Evidence from Size-based Labor Regulations and Fines in Peru
title_full_unstemmed Are Labor Inspections Protecting Workers’ Rights? Adding the Evidence from Size-based Labor Regulations and Fines in Peru
title_sort are labor inspections protecting workers’ rights? adding the evidence from size-based labor regulations and fines in peru
publishDate 2016
url http://sedici.unlp.edu.ar/handle/10915/65286
http://www.cedlas.econo.unlp.edu.ar/wp/wp-content/uploads/doc_cedlas205.pdf
work_keys_str_mv AT viollazmariana arelaborinspectionsprotectingworkersrightsaddingtheevidencefromsizebasedlaborregulationsandfinesinperu
bdutipo_str Repositorios
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