Closing Peru's Ethnic Gaps Amidst Sustained Economic Growth

Author/Editor:

Carlos Chavez ; Gonzalo Salinas ; Yuri Zamora

Publication Date:

September 9, 2022

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary:

We analyze the recent evolution of ethnic economic inequality in Peru, a major source of social discontent in the country. Household survey data indicates that recent decades of high output growth also witnessed a substantial narrowing of socioeconomic gaps among ethnicities. Most notably, the Mestizo ethnic group surpassed the White group in income per capita, and Native American also experienced a relative improvement. Mincerian regression analysis suggests that the main contributors to these developments were rural-to-urban migration and increased education. Based on our statistical findings, we propose enhancing education and other public services, increasing government revenues, lowering informality, and promoting competition as the main public policies that could accelerate the ongoing narrowing of ethnic gaps.

Series:

Working Paper No. 2022/180

Frequency:

regular

English

Publication Date:

September 9, 2022

ISBN/ISSN:

9798400220333/1018-5941

Stock No:

WPIEA2022180

Pages:

48

Please address any questions about this title to publications@imf.org