Universidad del Norte Por: Roberto Angulo, Alejandro Gaviria, Liliana Morales
This paper studies the recent evolution of life conditions in Colombia with an emphasis in the rise of the middle class. Between 2002 and 2011, household real income increased 36%, the middle class went from 16% to 27% of the total population, and the poverty rate dropped from 50% to 34%. At the same time, households across all social groups improved their life conditions in several dimensions: education, health, housing and employment, etc. Despite the progress, the size of the middle class in Colombia is still smaller than in other countries in Latin America, and many middle class households have not overcome the long-term problems of labor informality and deficient human capital.