Abstract
The objective of this chapter is to provide a systematic assessment of rural poverty in Peru and to study the most important factors that determine per capita income and expenditures of rural households. This chapter consists of three parts. The first part is devoted to a descriptive analysis of the evidence for rural Peru based on the Living Standard Measurement Survey (LSMS) of 1994. The emphasis here is in characterizing the main groups in the rural sector of Peru: farmers, agricultural workers and non-agricultural workers. It is shown that these three groups are quite different from each other in terms of their levels of poverty, asset endowments, demographic characteristics and sources of income. The main implication of this is that an effective rural poverty alleviation strategy needs to explicitly consider the idiosyncrasies of each group in targeting and designing policy instruments.
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