Structural Labor Precariousness in Peru

Abstract

The role of Peru in the international division of labor is the structural condition for the persistence of labor precariousness in the country. At a more concrete level, labor precariousness is an expression of the economic and business structure of the country. An economic structure heavily dependent on the non-tradable sectors and a business structure dominated by micro business undertakings do not permit the eradication of precarious labor conditions as economic growth hinges on economic progress abroad and precariousness is the source of profit of micro companies. Labor precariousness is not an automatic consequence of Peru’s role in the globalized capitalist world, but rather the social and economic consequence of the neoliberal policies implemented in the 1990s and, in particular, the current neoliberal development model in place.