Inequality is one of Colombia’s central long-run constraints. Colombia has high levels of inequality and high persistence of income across generations, with income inequality ranked highest among all OECD countries and the second highest among 18 LAC countries. [2]. The Gini coefficient of household income (after paying taxes and receiving transfers), reached 0.551 in 2021. The richest 10 percent of Colombians earned more than 11 times the income of the poorest 10 percent. In addition, there are gender gaps in access to economic opportunities. Women have lower labor force participation than men, are more likely than men to be unemployed, earn less than men for the same type of job, and are less likely to fully use their stock of human capital. With the COVID-19 pandemic in 2020, poverty and inequality is estimated to have increased, and women’s employment rates declined. Gender-based violence is also a concern.
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