Factorial, personal, and wealth inequality in Peru, 1950-2016

Abstract

Distribution of factorial income, personal income, and wealth in Peru is highly inequitable. In the 1960s, wage share was higher than at international average. It improved from the 1990s onwards, but without reaching previous levels. The corrected Gini personal income coefficient exceeded the official trend. The levels of inequality in productive wealth and assets distribution were higher than those of personal income distribution, in accordance with the international literature on the subject. A proxy of wealth distribution was elaborated, one which factored in both natural persons’ and businesses’ bank deposits in the national financial system. Some of the results are then compared with those of other Latin American economies.