Wage share and structural heterogeneity in Peru: Diagnosis and simulations

Tosoni G.A. · Problemas del Desarrollo (2022) · DOI: 10.22201/iiec.20078951e.2022.208.69761

Resumen

This article examines the effect of structural heterogeneity on income distribution and presents the evolution of the wage share in Gross Domestic Product (GDP) and Gross Value of Production (GVP) for the period 1950-2017. The article calculates and analyzes intersectoral differences in labor productivity and wages in various sectors of the Peruvian economy. Based on an input-output (IO) model for 14 economic activities, projections of final demand for 2018-2030, and trends in the production structure and primary input matrix, this article concludes that, in various scenarios, the wage share in the GVP will present a downward trend between 2018 and 2030. Both the analysis of structural heterogeneity and the results of the simulations demonstrate the importance of productive structure when seeking to understand severe inequality.

Instituciones: Universidad del Pacífico