Inequality (Re)considered Peru 1997-2015 Desigualdad (Re)considerada Peru 1997-2015

Abstract

Income inequality in Peru declined in the period 1997-2015 according to Peru´s National Statistics and Information Institute and the World Bank. This result, however, is affected by a measurement error due to the fact that household surveys exclude top income households that self-exclude from participating. Using the Lakner & Milanovic (2013) methodology we correct the measurement bias and generate new series of Gini coefficients for income and spending. We conclude that inequality is not only higher but persistent. Further, the distribution tails have increased their participation in the distribution of income while middle groups have been compressed.