A distributive analysis using Peru's National Transfer Accounts

Abstract

National Transfer Accounts (NTAs) provide insights into the effects of ageing on various forms of intergenerational transfers. When these accounts are disaggregated by socioeconomic status (SES) and calculated for at least two different time periods, they offer a powerful tool for understanding changes in economic inequality across age groups and over time. This paper illustrates the application of some standard distributional analysis tools using NTAs, specifically focusing on the case of Peru for 2007 and 2019. The main findings suggest that younger individuals have been the relative “winners” from Peru's sustained economic growth over the past two decades. Additionally, the equalizing power of tertiary education has increased during this period, i.e., a greater prevalence of tertiary education reduces inequality. However, a concerning observation is the deterioration of living conditions among older and less educated individuals.