Training, average wages and taxes as factors that explain the attitude toward job regulation in contexts of informality

Carlos Vílchez-Román, Alonso Rojas-Mendoza, Antonio Huapaya-Huapaya

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Abstract

The hiring of illegitimate staff is a widespread problem across small and midsize enterprises, affecting the wages of those working within the bounds of the law. For that reason, the objective of the study was to validate a model that explains the attitudes towards labor regulation. Two hypotheses were tested: a) professional training mediates the relationship between educational level and attitude toward labor regulation; b) average wage and attitude toward tax regulation predict attitude towards labor regulation. It is a cross-sectional study. The conceptual model of exploratory nature works with two data collection tools: the National Survey of Enterprises (ENE) 2015 and structured interviews applied to Peruvian SME owners. For ENE 2015 it was used one-step stratified sampling. The quantitative analysis was carried out with PLS-SEM (Partial Least Squares – Structural Equation Modeling), a technique for structural modeling that maximizes the variance; for the qualitative analysis, the terMEXt program was used. The proposed causal routes for the two hypotheses explained a moderately high proportion of the two variables belonging to the conceptual model, training received (R2 = 0.396) and attitude toward labor regulation (R2 = 0.448). This study contributes to understanding the informal culture within SMEs. The application of this approach in other sectors is recommended to improve attitudes towards labor reforms.

Translated title of the contributionTraining, average wages and taxes as factors that explain the attitude toward job regulation in contexts of informality
Original languageSpanish
JournalContaduria y Administracion
Volume65
Issue number1
DOIs
StatePublished - 2020
Externally publishedYes

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