This paper analyzes the impact of Peru’s agrarian reform on perceptions of income distribution. Using historical data and household surveys, an instrumental variables approach is employed to identify the causal effect of land redistribution on the gap between perceived and actual economic inequality. The results show that in areas with greater reform intensity, the absolute difference between perception and reality is more pronounced. Specifically, a 1-percentage-point increase in redistributed land reduces perceptual bias by an average of 0.127 points, indicating a tendency to underestimate one’s actual position in the income distribution. Transmission mechanisms such as changes in income structure, labor formality, and perceived stability are explored, providing relevant evidence for the design of redistributive policies.