Gender and Income Distribution in a High- Informality Context: A CEQ-Based Analysis for Colombia

This study assesses the extent to which Colombia’s fiscal policy mitigates gender gaps in income and poverty. Using the fiscal incidence methodology developed by the Commitment to Equity (CEQ) Institute and household survey data from 2023, the analysis identifies structural disparities. Households headed by women exhibit a poverty rate 9.3 percentage points (p.p.) higher than those headed by men. And this gap narrows to 5.9 p.p. after controlling for factors such as reliance on informal job earnings and the presence of dependents. Although fiscal policy instruments reduce the gross income gap between these households (from 14.1% to 11.2%), its effect on the conditional poverty gap is marginal, decreasing it only from 5.9 p.p. to 5.5 p.p. The findings underscore the need for more inclusive policies that recognize and address vulnerabilities arising from the intersection of gender, informality, and household structure.