Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/63483
Authors: 
Roever, Sally
Year of Publication: 
2005
Series/Report no.: 
Research Paper, UNU-WIDER, United Nations University (UNU) 2005/16
Abstract: 
Almost twenty years have passed since researchers from the Institute for Liberty and Democracy in Peru showed how ‘bad laws’ impose disproportionate costs on those who choose formality. Although a multitude of conflicting regulations still precludes effective governance of informal trade in Lima, this paper argues that the sources of those conflicts are more diverse – though perhaps more tractable – than they might have been twenty years ago. Specifically, the paper identifies three sources of policy incoherence in Lima that contribute to persistent clashes between informal workers and policy makers: (1) the lack of definitional clarity in national and metropolitan-level legislation; (2) the absence of reliable mechanisms designed to resolve those definitional contradictions; and (3) a resulting lack of policy continuity over time within individual municipal administrations.
Subjects: 
informal economy
taxation
law
government policy
JEL: 
E26
H71
I38
K42
ISBN: 
9291906956
Document Type: 
Working Paper

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