Colombia said it would raise the country’s minimum wage by 23% starting Jan. 1, joining other Latin American countries in a bid to close huge inequality gaps.
Though leftist Colombian President Gustavo Petro said the move would help “democratize wealth,” experts have criticized the policy, with the chief economist of a major local bank saying the hike is “absolutely unsustainable.”
Leftist leaders elected across Latin America in recent years have similarly vowed to tackle inequality by boosting minimum wages; Mexico’s ruling party has increased them by close to 300% since 2019. However, the region’s high informal employment rates, which hover around 50%, mean only a small share of the population actually benefits from the hikes.
