Abstract

ACUNA ASCENCIO, Elizabeth Verania; CARLOS ANDRES, Susana Sarvia  and  MOUGENOT, Benoit. Income inequality and economic growth in Peru. Prob. Des [online]. 2025, vol.56, n.221, pp.167-187.  Epub Oct 27, 2025. ISSN 0301-7036.  https://doi.org/10.22201/iiec.20078951e.2025.221.70275.

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.

Keywords : economic growth; income inequality; time series; Kuznets; dynamic autoregressive distributed lag (ARDL) model.

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