Why is there an “epidemic” of temporary contracts in Peru?
The Peruvian Institute of Economics, via El Comercio, highlights the findings of the study by Miguel Jaramillo, Julio Almonacid and Luciana De La Flor, “The deprotecting effects of employment protection: the impact of the 2001 labor reform”. The stury shows that by 2015, the ruling of the Constitutional Court of 2001 would have cost the creation of just over 900 thousand jobs with indefinite contracts, which ended up being temporary due to the practical impossibility of firing. As a result, S/.6,100 million soles to labor income are estimated in loss, due to the difference in benefits between types of contracts.
