Cover: Relative Wages, Skill Shortages, and Changes in Income Distribution in Colombia

Relative Wages, Skill Shortages, and Changes in Income Distribution in Colombia

Published 1967

by Robert L. Slighton

Purchase Print Copy

 Format Price
Add to Cart Paperback75 pages $25.00

An analysis of the income distribution relative to the economic growth in Colombia. Distribution of income in Colombia has been, and is, very unequal: 10 percent of the population of the large cities receives about half of the total personal income. This study examines the hypothesis that this inequality will widen if growth of the modern sector of the economy is retarded after the transition from agrarianism to the dual economy is begun. In Colombia, this increase in inequality resulted from the combined effect of an increase in unemployment, an increase in the wage differential between subsectors of the economy characterized by changing technology (modern) and subsectors where technology is static (traditional), and a rate of growth of employment in the modern subsectors that is less than in the traditional subsectors. The widening wage differential between the modern and traditional subsectors is a result of more intensive educational differences, and of differences in the competitive structure of the labor and product markets. This pattern of change of income distribution may alter if population growth is controlled, if export (hence import) capabilities are developed, and if labor force quality is upgraded to allow for modern subsector domination of the economy. 75 pp.

This report is part of the RAND research memorandum series. The Research Memorandum was a product of RAND from 1948 to 1973 that represented working papers meant to report current results of RAND research to appropriate audiences.

This research in the public interest was supported by RAND, using discretionary funds made possible by the generosity of RAND's donors, the fees earned on client-funded research, and independent research and development (IR&D) funds provided by the Department of Defense.

This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit

RAND is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.