A radiography of informality. El Comercio highlighted Miguel Jaramillo’s study on the demand for formality among microfirms
The Peruvian Institute of Economics (IPE) published an article on the evidence around informality. For this, gathers our Executive Director Miguel Jaramillo’s findings on the demand for formality among microfirms in Downtown Lima, Is there demand for formality among informal firms? Evidence from microfirms in downtown Lima (GRADE 2013): “The study reports that only one out of four firms decided to go through the process of formalization even when they were offered to run all the expenses of licenses and guidance during the process. Thus, according to the study, beyond the cost of formalization, the recurrent costs of municipal inspections, tax and labor may be more relevant. The study concludes the advantages of informality outweighted the advantages of formality“.
