## Closing Peru's Ethnic Gaps Amidst Sustained Economic Growth

_IMF Working Papers, September 9, 2022_

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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

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### 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.

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_Source: https://www.imf.org/en/publications/wp/issues/2022/09/09/closing-peru-s-ethnic-gaps-amidst-sustained-economic-growth-523274_