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Equalizing growth: The case of Peru

Author

Listed:
  • Ramirez-Rondan, N.R.
  • Terrones, Marco E.
  • Winkelried, Diego
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 significantly 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.

Suggested Citation

  • Ramirez-Rondan, N.R. & Terrones, Marco E. & Winkelried, Diego, 2020. "Equalizing growth: The case of Peru," MPRA Paper 104691, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:104691
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    References listed on IDEAS

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    Cited by:

    1. Carlos Chavez & Mr. Gonzalo Salinas & Yuri Zamora, 2022. "Closing Peru's Ethnic Gaps Amidst Sustained Economic Growth," IMF Working Papers 2022/180, International Monetary Fund.

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    More about this item

    Keywords

    Inequality; distribution; consumption; income; Peru.;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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