Author Description

This paper examines the distribution of welfare in Peru in 1985-86 as measured by (adjusted) per capita consumption expenditures. The data employed are from the 1985-86 Peru Living Standards Survey. It is primarily descriptive in nature, but possible explanations of patterns observed are given at several points. The major findings include several items. First, there is a strong correlation between education and welfare, which highlights the importance of education policies. Secondly, the urban population is clearly better off than the rural population, and the majority of the poor are found in rural areas, most often as self-employed agriculturalists. Thirdly, poor households have as many, if not more, working members as a fraction of total members, as a typical Peruvian household. Finally, within urban areas, heads of poor households are primarily sales and service workers, industrial and craft workers, both self-employed and employed by private firms.