Income inequality and economic growth in Peru

Verania Acuña Ascencio E.; Sarvia Carlos Andres S.; Mougenot B. · Problemas del Desarrollo (2025) · DOI: 10.22201/iiec.20078951e.2025.221.70275

Resumen

This research measures the impact of economic growth, poverty incidence and high school enrolment in Peru on national income inequality using an annual time series for the period 1985-2022, applying the Kuznets curve theory. A dynamic autoregressive distributed lag (ARDL) model is used. The conclusion is that if economic growth increases by 1%, income inequality decreases by 1.4884%. Meanwhile, education and poverty incidence are directly related to income inequality since a 1% increase in education and poverty incidence increases income inequality by 0.9849 and 0.8933%, respectively.

Instituciones: Universidad San Ignacio de Loyola