December 11, 2017Gestión

Miguel Jaramillo in Gestión: “The 2001 labor reform leads to very negative effects on workers”

Gestión highlights the findings from the study by Miguel Jaramillo, Julio Almonacid and Luciana de la Flor, “The desprotective effects of employment protection”, which addresses the impact of the ruling issued by the Constitutional Court in 2001 on decisions of the type of contract used in the Peruvian labor market and the workers’ well-being. According to Jaramillo: “In the first place, far from giving workers stability, the probability of having a permanent contract is drastically reduced. Secondly, it affects income, because permanent workers have higher incomes than temporary workers. Using our estimates of how many workers would have a permanent job if there had been no reform, we find that the loss of income for these is 6,100 million per year.