Equalizing growth: The case of Peru

Nelson R. Ramírez-Rondán, Marco Terrones and Diego Winkelried

No 176, Working Papers from Peruvian Economic Association

Abstract: Following the economic and political reforms of the 1990s, the Peruvian economy experienced two decades of exceptional growth in the 2000s. How was inequality affected by the strong growth performance of 2004-19? Which were the main factors associated with these inequality changes? The distribution of both income and consumption in Peru was highly unequal in 2004, with important geographic and regional differences. Since then, the degree of economic disparity decreased signifficantly associated with the exceptional growth of 2004-19. This decline in inequality was broad-based, yet it was not homogeneous across geographic areas, regions, or time. A correlate of this reduction in inequality has been a falling polarization. While wages and, to a lesser extent, government transfers accounted for most of the decline in income inequality, food prepared at home played a pivotal role in reducing consumption inequality, particularly in rural areas.

Keywords: Inequality; distribution; consumption; income; Peru. (search for similar items in EconPapers)
JEL-codes: D31 E24 O15 (search for similar items in EconPapers)
Date: 2020-12
New Economics Papers: this item is included in nep-mac
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Citations: View citations in EconPapers (1)

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Working Paper: Equalizing growth: The case of Peru (2020)
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