Targeting indicators: Peru 1994

This article examines the targeting of social programs in the context of poverty in Peru, seeking to identify social groups where investment would be most effective in reducing poverty. The methodology developed by Kakwani (1990) is used to calculate targeting indicators, reflecting the impact of one nuevo sol allocated to social programs on various poverty indices, specifically for the year 1994. The sample is based on data from the National Household Survey on Living Standards, covering approximately 3,600 households at the national level. The results indicate that poverty is most acute in rural areas and among heads of household with low educational attainment, where targeting the agricultural sector generates the greatest impact. In addition, high poverty elasticities with respect to growth and inequality are observed, suggesting that redistributive policies may be more effective in the short term. The implications highlight the need to prioritize transfers to specific areas to optimize poverty reduction, taking into account demographic and socioeconomic characteristics. (Abstract and audio: Department of Economic Publications)