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New Insights About Wage Inequality in Colombia

CID Research Fellow & Graduate Student Working Paper No. 66

Andres Gomez-Lievano, Juan Tellez and Eduardo Lora
December 2015

Abstract:

This paper presents a descriptive analysis of wage inequality in Colombia by cities and industries and attempts to evaluate the impact of the inequality of industries on inequality of cities. Using the 2010-2014 Colombian Social Security data, we calculate the gini coefficient for cities and industries and draw comparisons between their distributions. Our results show that while cities are unequal in similar ways, industries differ widely on how unequal they can be with ginis. Moreover, industrial structure plays a significant role to determine city inequality. Industrial framework proves to be a key element in this area for researches and policymakers.

Affiliated Program: Growth Lab