An Anatomy of the Distribution of Urban Income: A Tale of Two Cities in ColombiaThis approach for analysis of distributional and other change in incomes in fast growing cities in the developing world is based on data from Bogota and Cali. Among the distinguishing features is the utilization of primary data from different household surveys, of comparable quality spread over six years. The paper uses different samples, inequality indices, income concepts, and ranking procedures in its analysis. Particular attention is paid to the existence of spatial inequality among different parts of the two cities by using an index of spatial income segregation. This is found to be very high when the cities are disaggregated spatially into radical sectors rather than into concentric rings. The inequality in labor earnings is also calculated and decomposed. The paper finds that the industry of activity and the size of the firm of the worker contribute little to overall inequality in earnings. Instead, education, occupation, and residence location of the worker contributed most to inequality in earnings. The results suggest that increases in spatial inequality in household as well as labor earnings could have deleterious effects on income distribution in the future. A special computer program EQUALISE which can compute income distribution indices is included. |
Contents
INTRODUCTION | 1 |
OVERALL TRENDS IN THE DISTRIBUTION OF INCOME | 23 |
THE SPATIAL DISTRIBUITON OF INCOME | 40 |
Copyright | |
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Common terms and phrases
1ST VARIABLE Appendix Atkinson Atkinson index Attn Bogota and Cali Bogota Cali census COEFFICIENT OF VARIATION Colombia computation comunas Contribution Sectors DANE DISTRIBUTION OF EARNINGS distribution of income distribution of labour DUMY entropy EQUALISE expansion factors Gini coefficient GROUP COMPONENT group contribution group inequality household income Household Survey INCOME CLASS income distribution income inequality income per capita income shares indices INDIVIDUALS RANKED industry of activity Inequality Index ingresos input file ISBN ITH GROUP labour earnings labour market level of inequality Log Variance Lorenz curve MAIN program Malaysia MEADIS Mean earnings Mean HINCAP MEAN INCOME measure NNUM NUMBER OF CATEGORIES overall inequality overall mean paperback posterior probabilities prior probability quantiles ranked by HINCAP ranked by household Ranking L Ranking ROW GROUP ROW VARIABLE sample SPATIAL DISTRIBUTION spatial inequality Staff Working Paper Stock Table Theil index TOTAL NUMBER urban VARIANCE OF INCOME workers World Bank World Bank Staff