The high participation of the informal sector in the economically active population (EAP) represents a key problem for the Peruvian economy, particularly in its condition as a developing country. In this sense, the aim of this thesis is to identify the long-term determinants of informal sector participation in the EAP. This study is related to the so-called “dual vision of informality”, to which LaPorta and Shleifer (2014) have recently contributed. Our hypothesis states that when both the per-capita capital stock and productivity rates of growth slow down below the population rate of growth, participation of the informal sector in the EAP tends to grow. That is to say, in the long-term participation of the informal sector in the EAP is determined by this set of variables. This hypothesis relies on an assumption made on the basis of Keynesian growth theory, by Thirlwall (2007) and Ji...

The high participation of the informal sector in the economically active population (EAP) represents a key problem for the Peruvian economy, particularly in its condition as a developing country. In this sense, the aim of this thesis is to identify the long-term determinants of informal sector participation in the EAP. This study is related to the so-called “dual vision of informality”, to which LaPorta and Shleifer (2014) have recently contributed. Our hypothesis states that when both the per-capita capital stock and productivity rates of growth slow down below the population rate of growth, participation of the informal sector in the EAP tends to grow. That is to say, in the long-term participation of the informal sector in the EAP is determined by this set of variables. This hypothesis relies on an assumption made on the basis of Keynesian growth theory, by Thirlwall (2007) and Ji...