Final answer:
The reduction of income inequality in Argentina, Bolivia, and Peru has been affected by a combination of an increase in the minimum wage, progressive taxation, and the expansion of social welfare programs.
Step-by-step explanation:
The factor that has contributed to a reduction of income inequality in Argentina, Bolivia, and Peru is all of the above: an increase in the minimum wage, the implementation of progressive taxation, and the expansion of social welfare programs. These measures are part of government policies aimed at reducing income inequality. Raising the minimum wage helps to increase the income for the lowest earners.
Progressive taxation ensures that those with higher incomes contribute a greater share, which can then be used to fund social welfare programs like TANF, SNAP, and Medicaid. These programs provide support to those experiencing poverty, which helps to level the socioeconomic playing field. A balance needs to be maintained, however, as overly aggressive economic equality measures may reduce economic incentives. Nonetheless, a moderate approach to reducing inequality can lead to an increase in economic output and support for market forces.