Ñopo, H. (2021). Políticas de protección social y laboral en el Perú. Una espiral de buenas intenciones, malos resultados y peores respuestas [UNDP LAC Working Paper Series, 17].

The legislation stipulates that, with some exceptions, all workers and their family members are covered by a social safety net that is financed by contributions from employers and workers. This legislation, to a large extent, is violated and to another extent has exceptions. As a result, most workers do not enjoy contributory social protection. The demand for such protection is then satisfied by other means: families and the state. However, when the state provides social protection for those who did not obtain it formally in the labor market, it introduces distortions: the incentives to contribute to social protection that comes from labor relations are reduced. This is especially relevant in low-productivity jobs.