Closing Peru's Ethnic Gaps Amidst Sustained Economic Growth
IMF Working Papers, September 9, 2022
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- Closing Peru's Ethnic Gaps Amidst Sustained Economic Growth
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Bibliographic details
- Authors: Carlos Chavez, Gonzalo Salinas, Yuri Zamora
- Published: September 9, 2022
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9798400220333.001
Summary findings
- Recent decades of high output growth in Peru witnessed a substantial narrowing of socioeconomic gaps among ethnicities.
- Household survey data indicates the Mestizo ethnic group surpassed the White group in income per capita.
- Native American also experienced a relative improvement in income per capita.
- Mincerian regression analysis suggests the main contributors to these developments were rural-to-urban migration and increased education.
Analysis and methods
- Data source: household survey data.
- Empirical approach: Mincerian regression analysis.
- Key analytical conclusion: rural-to-urban migration and increased education are primary drivers of narrowing ethnic economic inequality.
Policy recommendations
- Enhance education and other public services.
- Increase government revenues.
- Lower informality.
- Promote competition.
- These policy options are proposed as ways to accelerate the ongoing narrowing of ethnic gaps based on the paper’s statistical findings.
Content in this bundle
- Working Paper