Jaramillo, M. y D. Campos (2019). Contratos laborales en el Perú: dinámica y determinantes (Documento de Investigación, 98). Lima: GRADE.

Beyond the commonly explored formality / informality binomial, this study helps to understand the duality of the formal labor market in Peru, determined by the type of contract used.

It is found that 70% of the formal work initiated between 2012 and 2016 involved a temporary contract; 19%, one for an indeterminate period; and the rest, other modalities. The study also finds that firms with a higher proportion of skilled, executive and more experienced workers are more likely to use contracts for an indeterminate period. On the other hand, it is evident that, only for having been hired after 2000, a worker has a probability of obtaining a contract for an indefinite period of 31 percentage points less than if he had started before that year, and 63 percentage points less if It was hired as of 2010. In addition, temporary jobs have high turnover rates, consistent with a shorter duration of employment and transitions to contracts for an indefinite period are quite limited.