Peru

Using panel data for Indonesia, Malawi, Peru and South Africa, this paper investigates the relationship between transitions to formal employment and workers’ labour income. It shows that transiting from informal to formal employment increases the probability of improving workers’ labour income in both absolute and relative terms. However, income gains from formalisation do not accrue to all workers equally. Switching to formal employment has the greatest potential to improve the labour income of the richest workers. The chances of improving the labour income of the poorest workers through formalisation are slim. Transitions between formal and informal employment affect income gains and losses differently for men and women, older and younger workers, and workers with different levels of schooling. The effects of labour market transitions on income changes are considerably greater in magnitude than other life events such as a births, separation, or death of a partner or spouse.

Peru's solid macroeconomic framework has driven substantial economic growth and poverty reduction in the past two decades. While the economy swiftly rebounded from the pandemic due to strong policy support, it exposed structural weaknesses such as a large informal sector and stark regional disparities in accessing public services. More recently, growth has slowed, and inflation remains high but declining. Looking ahead, main challenges for boosting productivity and investment include strengthening competition, improving regulations, diversifying exports, and enhancing infrastructure. Improvements in governance and the rule of law are essential pillars for achieving sustainable long-term growth and social cohesion. Expanding access to quality education, reducing social contributions, particularly for low-income workers, and providing a same basic level of universal social protection for all workers, formal and informal alike, would help reducing widespread informality and inequities. This will require raising additional tax revenues and improving spending efficiency. Environmental challenges and risks loom large, but also provide significant opportunities for the future. To tackle environmental challenges Peru needs to curb deforestation, while capitalizing on its renewable energy potential to reduce reliance on fossil fuels. SPECIAL FEATURES: RAISING PRODUCTIVITY, EXPANDING SOCIAL PROTECTION, REDUCING LABOUR INFORMALITY

Regulators act as 'market referees', balancing often competing interests of stakeholders, including governments, current and future actors in the markets, and consumers. At the same time, markets are changing at an unprecedented pace due to new technologies, the international drive toward carbon-neutral economies, shifts in consumer needs and preferences, and, more recently, the profound changes brought by the COVID-19 pandemic. Assessing the performance of economic regulators must therefore be a continuous effort. This progress review evaluates the changes put in place by Peru’s telecommunications regulator, OSIPTEL, since the previous OECD performance assessment review in 2018, in the interest of increasing the effectiveness of its regulatory activities and improving final outcomes for consumers and the economy.

This report analyses current public financial management practices in Peru in light of OECD recommendations and good practices, and identifies areas where Peru could improve. It focuses on four areas: budgetary practices and governance; treasury modernisation and cash management systems; ensuring a fiscally sustainable, competitive pay regime for the Peruvian public sector; and public infrastructure programming, budgeting and management. It analyses these issues both at central government level and for sub-national governments. The report provides detailed policy recommendations to overcome the main challenges and their implications in each of the areas.

Good governance is a building block for the performance of regulators, including civil aviation authorities. This paper reports the results of a mapping of governance arrangements across 29 civil aviation authorities in Latin American and Caribbean countries, with the International Civil Aviation Organization’s South American and North American, Central American and Caribbean regions. Applying the methodology of the OECD Indicators on the Governance of Sector Regulators, the results provide a birds-eye view of the independence, accountability and scope of action of participating authorities. This paper explains the indicator methodology, summarises key data points, and presents high-level take aways.

The OECD review of Gender Equality in Peru: Towards a Better Sharing of Paid and Unpaid Work is the second of a series focusing on Latin American and the Caribbean countries. It compares gender gaps in labour and educational outcomes in Peru with other countries. Particular attention is put on the uneven distribution of unpaid work, and the extra burden this places on women. It investigates how policies and programmes in Peru can make this distribution more equitable. The first part of the report reviews the evidence on gender gaps and on what causes these, including the role played by attitudes. The second part develops a comprehensive framework to address these challenges, presenting a broad range of options to reduce the unpaid work burden falling on women, and to increase women’s labour income. The final part discusses the impact of the COVID-19 crisis and considers how the policy priorities of the government will have to change to address these. An earlier review in the same series has looked at gender equality policies in Chile (2021).

This report compiles comparable tax revenue statistics over the period 1990-2020 for 27 Latin American and Caribbean economies. Based on the OECD Revenue Statistics database, it applies the OECD methodology to countries in Latin America and the Caribbean to enable comparison of tax levels and tax structures on a consistent basis, both among the economies of the region and with other economies. This publication is jointly undertaken by the OECD Centre for Tax Policy and Administration, the OECD Development Centre, the Inter-American Center of Tax Administrations (CIAT), the Economic Commission for Latin America and the Caribbean (ECLAC) and the Inter-American Development Bank (IDB).