Content

SEND US FEEDBACK


We're always looking for ways to make Geoba.se better. Have an idea? See something that needs fixing? Let us know!

Colombia: Income Distribution
Country Study > Chapter 2 > The Society and Its Environment > Income Distribution

INCOME DISTRIBUTION


The question of who has benefited from economic growth has been the subject of considerable controversy in Colombia. In the opinion of some observers, growth during the 1970s worsened the skewed distribution of income. The World Bank, in contrast, has concluded that the real incomes of the poorest workers improved significantly during the 1970s.

Data from a variety of sources suggest that there was a redistribution of income toward the two extremes of the population during the 1970s. Income growth was faster for those groups at both the top and the bottom of the income distribution ladder. By contrast, all the evidence suggests that the middle class, which did well in the 1960s, lost ground in the 1970s. For the poor, increased employment of females and other secondary workers at higher wage rates explained most of the improvements; for the rich, the higher income of the head of the household accounted for the betterment.

Agricultural workers and small landholders made up the majority of the poor in Colombia in the late 1980s, although this proportion was decreasing. The urban poor consisted mainly of persons without primary education, who with their numerous children were grouped in large households where few of the members worked. The poorest households were often headed by a single parent -- typically a woman. Those who worked were concentrated in domestic service, construction, manufacturing, and retail trade. The wages of the rural and urban poor stagnated until the mid-1970s, improved significantly in the latter half of the decade, but then deteriorated somewhat in the mid-1980s. Real earnings, however, improved more than the wage rates in view of greatly increased employment among household members, which was more significant in urban locations that had greater opportunities for female employment. The income per member of poor urban families also was likely to have benefited from the decline in fertility in urban areas.

Relative wages in low-paid occupations tended to converge over the 1970s. Those paid the least at the beginning of the decade gained, the better-paid semiskilled workers faced stagnant or falling wages, and higher-paid workers suffered substantial setbacks. Important factors contributing to the improvement in the lot of the poor included rapidly expanding educational opportunities since the early 1950s, reinforced by population, nutrition, and related social policies since the late 1960s. Strongly complementary was the employment boom of the 1970s that enabled increasing numbers of women and other "secondary" workers in the poorer households to find jobs, significantly increasing household incomes.

The economic positions of the higher-income group apparently also improved substantially during the 1970s. Rapid economic growth in this period provided ample opportunities for raising entrepreneurial profits, and substantial real interest rates were available to owners of capital. The decade also witnessed booming markets in coffee, emeralds, urban residential housing, and illegal trade.

By contrast, persons in the intermediate range of the income distribution fared poorly. This situation was caused in part by the surging supply of educated workers during the 1970s.

Data as of December 1988




Last Updated: December 1988


Editor's Note: Country Studies included here were published between 1988 and 1998. The Country study for Colombia was first published in 1988. Where available, the data has been updated through 2008. The date at the bottom of each section will indicate the time period of the data. Information on some countries may no longer be up to date. See the "Research Completed" date at the beginning of each study on the Title Page or the "Data as of" date at the end of each section of text. This information is included due to its comprehensiveness and for historical purposes.

Note that current information from the CIA World Factbook, U.S. Department of State Background Notes, Australia's Department of Foreign Affairs and Trade Country Briefs, the UK's Foreign and Commonwealth Office's Country Profiles, and the World Bank can be found on Factba.se.

Colombia Main Page Country Studies Main Page




Section 61 of 188






IMAGES


Click any image to enlarge.


National Flag



($) Colombian Peso (COP)
Convert to Any Currency



Map



Locator Map