Beyond Growth: A Methodological Framework for Assessing Urban Quality of Life Disparities in Peru

This article develops and applies a multidimensional framework to assess urban quality of life (QoL) disparities in Peru during a decade of economic growth (2007–2017). Moving beyond income-based approaches, the study is grounded in the capability approach, which conceptualises well-being as real opportunities and functionings, and in theories of regional inequality derived from New Economic Geography. A composite QoL index (IQoL) is constructed from five dimensions—income, living standards, education, fertility, and legal identity—using census microdata. Legal identity is conceptualised as a “gateway capability” conditioning access to other resources and overall QoL. Methodologically, we apply the Weighted Sum Approach with equal weights, address the modifiable areal unit problem, and capture spatial dependence through Local Indicators of Spatial Autocorrelation (LISA). The results show that while income poverty declined, income inequality remained stagnant and spatial disparities widened. This pattern reflects agglomeration effects predicted by New Economic Geography, the Williamson inverted-U hypothesis, and the Harris–Todaro expected wage model, which explain why migration and urbanisation sustain disparities despite poverty reduction. Fertility and documentation contributed most to improvements in IQoL, whereas living standards and education produced heterogeneous effects. The findings confirm the non-substitutability of capabilities: gains in one domain cannot compensate for deficits elsewhere. The study contributes by operationalising the capability approach in a Latin American context and linking multidimensional poverty analysis with spatial economic theories. It also offers a replicable methodological tool for monitoring QoL disparities across regions and over time.