Policy Issue:
Currently there is little evidence on the right balance between monitoring and enforcing mechanisms to improve business safety and keeping the compliance burden to businesses low when the associated risks are low.
In Peru, over 90 percent of business do not pass their safety inspection on the first visit and cannot obtain the respective certificate right away. The main issue seems to be a lack of standardization in the application of the regulation, which generates inefficiencies and increases costs for both the firms and the government.
This study will pilot an improve business inspection scheme based on the introduction of electronic inspections, an integrated monitoring system for municipalities, and verifications of inspector assessments by a third party. The improved system is expected to have effects on compliance, leakages, business safety, inspection quality, and firm costs.
Documents:
Researchers:
Manuel Barron, Associate Professor, Universidad del Pacifico
Guadalupe Bedoya, Economist, the World Bank
Paul Gertler, Li Ka Shing Professor of Economics, UC Berkeley
Ana Goicoechea, Senior Economist, the World Bank
Funding Partners: