Accessing and exiting the financial system in Peru: Does labor informality play a role?

Aurazo J.; Gasmi F. · Latin American Journal of Central Banking (2026) · DOI: 10.1016/j.latcb.2025.100181

Resumen

Using Peruvian survey data from 2015–2018, we examine the dynamic relationship between access to the financial system – measured by ownership of bank accounts and payment cards – and labor informality. Our findings reveal that informal workers have an 8 percentage point (pp) lower probability of entering the formal financial system and face a 9.3 pp higher likelihood of exiting it. Regarding labor market transitions, individuals who remain in formal employment have a 9 pp higher probability of gaining access to bank accounts and a 12 pp lower probability of losing access compared to those who persist in informal jobs. Furthermore, workers transitioning into formal employment are 9.7 pp more likely to enter the formal financial system and 7.1 pp less likely to exit it. These results underscore the complementarity between formalizing the labor market and expanding access to financial services, highlighting the importance of integrated policies to promote financial inclusion and labor market formalization.