Jaramillo, M. (2004). Regulación del mercado laboral en Perú (Informe de consultoría). Lima: GRADE.

This paper analyzes the two main mechanisms used in labor market regulation. First, employment protection measures are discussed. These constitute the set of restrictions on the hiring and firing of workers and include compensation rules, dismissal procedures, contract modalities, among others. Within this first group, the paper will focus on the analysis of compensation for unjustified dismissal, Compensation for Time of Service (CTS) and the regulation of temporary employment contracts. Secondly, non-wage labor costs are analyzed, which include compulsory health insurance, contributions to social security systems, bonuses, family allowances, etc. The objective is, in the context of the debate on changes in labor regulations, to contribute to a more informed discussion that allows balancing the competitiveness needs of companies with effective basic rights for workers. In this direction, we specifically propose to: identify the lessons from international evidence regarding the effects of labor protection legislation on labor demand and employment generation and develop their implications for the Peruvian case, as well as to place the regulation of the Peruvian labor market in the international context, so as to have a more realistic notion of how protectionist or flexible it is.