OECD Home › Economy › By Country › Colombia
Income inequality in Colombia has declined since the early 2000s but remains very high by international standards. While most of the inequality originates from the labour market, wealth – and thus capital income – is also highly concentrated and the tax and transfer system has little redistributive impact.
Income inequality in Colombia has declined since the early 2000s but remains very high by international standards. Income dispersion largely originates from the labour market, which is characterised by a still high unemployment rate, a pervasive informal sector and a wide wage dispersion reflecting a large education premium for those with higher education.
The Colombian economy is strong and the outlook is promising, but the country must do more to ensure that the ongoing commodities boom contributes to sustainable and inclusive growth over the long-term, according to the OECD’s latest Economic Assessment of Colombia.
The Colombian economy has been resilient to the crisis. To secure a higher and more balanced economic growth in the future, it needs to boost productivity and reduce income inequality. Further reforms of the labour market and tax system are key.
List of Economic Assessment of Colombia
Closing the income gap with the OECD and enhancing distribution of growth requires reforms in many fronts. Better functioning labour and product markets and investment in skills and infrastructure would boost productivity, while well-designed social and education policies can reduce inequalities
This seminar brings together policy makers from Latin America and economists from academia, international organisations and the private sector to discuss policies that would help Latin American countries to strengthen their growth potential.
This paper estimates unrestricted monetary reaction functions for four Latin American countries (Brazil, Chile, Colombia and Mexico) and tests for the presence of non linear effects in central bank behaviour.