For the past fifteen years, Colombia has been engaged in a grand experiment in decentralization. Since 1986, subnational government spending has increased dramatically, as the regions have assumed greater control of health and education programs and other local services, and an increasing...

This paper explores the relationship between macroeconomic conditions and urban income distribution in Colombia. The results show that unemployment and inflation have significant regressive effects. Manufacturing output growth is clearly progressive, as well as improved conditions in the rural...