Abstract

BONILLA MEJIA, Leonardo. Determinants of the Regional Differences in Income Distribution in Colombia, a Micro-decomposition Analysis. Ens. polit. econ. [online]. 2009, vol.27, n.59, pp.100-157. ISSN 0120-4483.

This paper studies the determinants of regional differences in household income distribution of the 23 Colombian major cities. The aim of the study is to explain why, in some cities, economic growth has come with significant increases in income inequality. The strategy consists on modeling what the household income distribution of the studied cities would be if they shared some characteristics of Bogota households. Parametric micro-de es are applied. Labor returns, and its interaction with education and family size, as well as non labor incomes are the most regressive factors. The occupational choices are Bogota's most progressive factor.

Keywords : regional economics; income distribution; inequality; decomposition; micro-decomposition.

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