Decompositions of Changes in Poverty in Colombia 2002-2012
No. 75 (2015-01-01)Author(s)
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Roberto Mauricio Sánchez Torres
Abstract
Poverty in Latin America has gone down in the last decade. That fact was led by a set of key aspects: economic growth, labor market and its institutions, and social programs based on cash transfers. The purpose of this paper is to perform decompositions of changes in poverty that was taken place in Colombia from 2002 to 2012, and analyze how growth, redistribution, demographic changes, education, the labor market situation and the non-labor income, led to reduce of poverty. It is found that the main elements that have reduced the poverty in Colombia are growth of incomes and the increase in labor income, and recently the increase in employment rate and non-labor income.
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