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Income Inequality In Urban Colombia: A Decomposition Analysis

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  • Gary S. Fields

Abstract

The persistence of poverty and income inequality in less developed countries (LDCs) is a source of serious concern to development economists. To understand the structure of inequality, several researchers using a variety of methodologies have measured the importance of various contributory factors to overall income variability. The available literature—which now includes studies of Brazil, Mexico, Iran, the Philippines, Taiwan, Thailand, Pakistan, and Colombia‐has been reviewed elsewhere (Fields, forthcoming). This paper presents additional evidence for urban Colombia, in the process raising some important methodological issues which bear on the design of future research studies. The data set used in this paper is described in Section I. The decomposition of Colombian inequality by functional income source is presented in Section 11 for micro data. Section I11 examines the robustness of source decomposition procedures to data aggregation. Section IV presents inequality decompositions by city, and Section V by other income‐determining characteristics. Conclusions appear in Section VI.

Suggested Citation

  • Gary S. Fields, 1979. "Income Inequality In Urban Colombia: A Decomposition Analysis," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 25(3), pages 327-341, September.
    • Handle: RePEc:bla:revinw:v:25:y:1979:i:3:p:327-341
    DOI: 10.1111/j.1475-4991.1979.tb00102.x
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    Cited by:

    1. Cecilia García-Peñalosa & Elsa Orgiazzi, 2013. "Factor Components of Inequality: A Cross-Country Study," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 59(4), pages 689-727, December.
    2. Alessio Guandalini, 2022. "Things you should know about the Gini index," RIEDS - Rivista Italiana di Economia, Demografia e Statistica - The Italian Journal of Economic, Demographic and Statistical Studies, SIEDS Societa' Italiana di Economia Demografia e Statistica, vol. 76(4), pages 4-12, October-D.
    3. Lima, Pedro G. & Teixeira, Pedro N. & Silva, Sandra T., 2021. "Major Streams in the Economics of Inequality: A Qualitative and Quantitative Analysis of the Literature since 1950s," IZA Discussion Papers 14777, Institute of Labor Economics (IZA).
    4. Bonilla-Mejía, Leonardo, 2011. "Diferencias regionales en la distribución del ingreso en Colombia," Chapters, in: Bonilla-Mejía, Leonardo (ed.), Dimensión regional de las desigualdades en Colombia, chapter 2, pages 35.63, Banco de la Republica de Colombia.
    5. C. Chameni Nembua, 2012. "Inequality factor decomposition under uniform additions property with applications to Cameroonian rural data," Applied Economics Letters, Taylor & Francis Journals, vol. 19(14), pages 1365-1371, September.
    6. Adams, Richard H, Jr & Alderman, Harold, 1992. "Sources of Income Inequality in Rural Pakistan: A Decomposition Analysis," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 54(4), pages 591-608, November.
    7. Cholezas, Ioannis & Tsakloglou, Panos, 2007. "Earnings Inequality in Europe: Structure and Patterns of Inter-Temporal Changes," IZA Discussion Papers 2636, Institute of Labor Economics (IZA).
    8. Antonczyk, Dirk & Fitzenberger, Bernd & Sommerfeld, Katrin, 2010. "Rising wage inequality, the decline of collective bargaining, and the gender wage gap," Labour Economics, Elsevier, vol. 17(5), pages 835-847, October.
    9. Simon Jurkatis, "undated". "Dos and Don'ts of Gini Decompositions," BDPEMS Working Papers 2013003, Berlin School of Economics.
    10. Cheikh Tidiane Ndiaye & Armand Akomavo Dagoudo & Babacar Mbengue, 2021. "Growth and Income Distribution Inequalities in Sub-Saharan Africa: A Dynamic Model Approach [Croissance et inégalités de distribution des revenus en Afrique subsaharienne : une approche par les mod," Working Papers hal-03202484, HAL.
    11. Jurkatis, Simon & Strehl, Wolfgang, 2014. "Gini decompositions and Gini elasticities: On measuring the importance of income sources and population subgroups for income inequality," Discussion Papers 2014/22, Free University Berlin, School of Business & Economics.
    12. N. Kakwani, 1996. "Income Inequality, Welfare and Poverty in Ukraine," Development and Change, International Institute of Social Studies, vol. 27(4), pages 663-691, October.
    13. Alessio Guandalini & Domenico Passante & Roberta Varriale, 2022. "The revenues of local governments in the statistical register for public administrations: inequality decomposition by sources," RIEDS - Rivista Italiana di Economia, Demografia e Statistica - The Italian Journal of Economic, Demographic and Statistical Studies, SIEDS Societa' Italiana di Economia Demografia e Statistica, vol. 76(3), pages 17-28, July-Sept.

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