Pensions, Peasants, and the Informal Economy: Family and Livelihood in Contemporary Peru
by Susan Vincent
A Peruvian case study explores how urban informal workers negotiate their livelihoods as they age, highlighting reciprocity among urban informal workers, retired formal sector workers, and peasants in a pattern of rural-urban circular migration. Labor-intensive mining in the twentieth century created a proletarian workforce that included men from the peasant community of Allpachico. Their wages became an anchor for kin-linked clusters of households. Now, despite an economic boom, the lack of formal jobs forces younger Allpachiqueños to undertake precarious and informal work. Resource-sector-funded state social spending, such as through state-administered pensions for retired workers and the elderly poor, has replaced wages as a stable source of cash. This state mediation between the technology-intensive resource sector and citizens elicits suspicion and uncertainty. Dispossessed of the right to work and subjected to conditions of eligibility for social programs, urban informal workers continue to rely on kin and community.
