Economics at your fingertips  

Rural structural change, poverty and income distribution: evidence from Peru

Insa Flachsbarth (), Simone Schotte (), Jann Lay () and Alberto Garrido ()
Additional contact information
Insa Flachsbarth: University of Göttingen
Simone Schotte: GIGA Institut für Afrika-Studien
Alberto Garrido: E.T.S. Ingeniería Agronómica, Alimentaria y de Biosistemas

The Journal of Economic Inequality, 2018, vol. 16, issue 4, No 8, 653 pages

Abstract: Abstract Some rural regions of Peru showed remarkable rates of poverty reduction and inequality reduction between 2004 and 2012, while others lagged behind. Using microsimulation-based decompositions, we analyse the driving forces behind these trends, finding that rural poverty and inequality reductions are mainly attributable to increasing labour incomes in Peru’s agricultural sector and, to a smaller extent, increasing public transfers. In earlier years, higher returns to experience drive these results, while in later years, increasing staple-crop yields and prices are of key importance. Further, remuneration of working hours increases in reaction to labour-supply shortages in rural areas. The accompanying rising incomes and non-agricultural job creation is less pro-poor than would be ideal, as they benefit more highly skilled workers. Further, shrinking farm sizes hampers poverty reduction and income-inequality reduction. Policies should target the participation of the poor in high-value (non-)agricultural activities, especially if positive trends in commodity prices are only transitory.

Keywords: Agriculture; Income distribution; Microsimulation-based decomposition; Peru; Rural poverty; Rural labour markets (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link) Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
Journal Article: Rural structural change, poverty and income distribution: evidence from Peru (2018) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
http://www.springer. ... th/journal/10888/PS2

DOI: 10.1007/s10888-018-9392-z

Access Statistics for this article

The Journal of Economic Inequality is currently edited by Stephen Jenkins

More articles in The Journal of Economic Inequality from Springer, Society for the Study of Economic Inequality Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

Page updated 2022-08-10
Handle: RePEc:kap:jecinq:v:16:y:2018:i:4:d:10.1007_s10888-018-9392-z