Informal Economy and Income Inequality in Metropolitan Lima: A Review of Empirical Evidence and Public Policy Perspectives (2000-2023)
DOI:
https://doi.org/10.5281/zenodo.17981755Keywords:
informal economy, income inequality, Metropolitan Lima, public policy, narrative review.Abstract
From 2000 to 2023 informal employment in Metropolitan Lima remained at 55-60 % of the labor force and accounted for nearly 30 % of the urban Gini coefficient; the formal-informal wage gap, low educational returns and gender inequality were key transmission channels. Formalization programs raised tax registration but did not change the primary income distribution nor reduce inequality. The pandemic widened the gap by pushing the poorest into subsistence informality. Breaking this vicious circle demands comprehensive policies combining human capital, credit and technology access, universal social protection and territorial/gender-focused interventions.
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