In Peru, over 92% of domestic workers have informal employment. This work examines both the causes and barriers of this informality in the hopes of promoting real change for these workers. I contend that ineffective and exclusive policy reforms, along with the undervaluation of domestic labor and the marginalization of domestic workers, have caused the high rate of informal employment within the sector. From a study I conducted in Lima, I find that most domestic workers are not aware of their rights and most employers do not comply with the law unless there is a third-party intermediary supervising the employment relationship; I argue that these barriers to formalization can be resolved with policy reform and comprehensive State services that seek to educate workers and supervise employers through enforcement measures. Finally, I offer the reforms of Uruguay as a guiding example.
Burrows, Dominique, "Causes and Barriers of Informality: Promoting Change for Domestic Workers in Lima, Peru" (2020). Economics Honors Papers. 34.
The views expressed in this paper are solely those of the author.