Why skilled Peruvians move to Spain despite earning less

Peru: $750 salaries, yet half the country wants out — where's the logic?

The official narrative sells emigration as an escape from poverty. But the data debunk that cliché. In Peru, a professional with a degree and a stable job earns about $750 a month on average. In purchasing power parity (PPP) terms, that figure doubles: their purchasing power is equivalent to around $1,500 in the United States. Yet some people leave that scenario behind and move to Spain, where the average salary barely exceeds €1,200 nominal and inflation has eaten away at the gap. Is that rational?

The skilled migration paradox
Economic theory says migration flows from countries with lower real wages to those with higher real wages. But when adjusted for PPP, many trained Peruvian workers would lose purchasing power by moving to Spain. Rents in Lima are 60% cheaper than in Madrid; the grocery basket, 40% less. So why do they leave? The answer that emerges from the analysis is not economic but about safety: violence, extortion, political instability. In other words, they trade wellbeing for peace of mind.

The 'lumpen migrant' argument
Some claim that only the 'lumpen' or the very ignorant emigrate from Peru, because rational calculation doesn't justify it. But this clashes with the reality of the profiles arriving: many are technicians, university graduates with established careers. The decision is not economic but existential. And on reaching Spain, they run into a precarious labour market and a cost of living they didn't expect. The result: overqualification and frustration.

The vicious cycle of insecurity
The irony is that those who leave over insecurity then encourage fellow Peruvians to come too, contributing to the home country losing human capital and the destination country facing growing pressure on public services. The cycle feeds itself. Meanwhile, those who stay in Peru on a $750 salary live better than many imagine… as long as they don't get hit by an extortion attempt.