Inequality and poverty in Uruguay by race: the impact of fiscal policies
Marisa Bucheli and
Maximo Rossi ()
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Florencia Amábile: Department of Economics, Universidad de la República in Uruguay
Marisa Bucheli: Department of Economics, Universidad de la República in Uruguay
No 19, Commitment to Equity (CEQ) Working Paper Series from Tulane University, Department of Economics
In Uruguay the tax structure and social spending reduce inequality and poverty for the whole society (Bucheli et al. 2013). In this study we analyze the effect of fiscal policy by race considering whites, afros and indigenous. The main question of our paper is whether the reduction of inequality and poverty benefit a racial group over the others or affect racial ethnic groups equally. The three racial groups are equally likely to be taken off extreme poverty by the direct transfer system. However, the hazard of leaving moderate poverty is lower for indigenous than for the other two groups. So the direct transfer system reduces poverty of the three groups but does not achieve to put racial groups on an equal footing. When analyzing the average income, the qualitative conclusions are on the same direction. Racial gap narrows slightly –led by in- kind transfers- and does not disappear.
Keywords: inequality; poverty; race; fiscal policy; direct transfers. (search for similar items in EconPapers)
JEL-codes: I38 I32 D63 H22 H24 (search for similar items in EconPapers)
Date: 2014-03, Revised 2015-02
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Published in Commitment to Equity, March 2014, pages 1-14
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http://econ.tulane.edu/RePEc/ceq/ceq19.pdf Revised version, 2015 (application/pdf)
Working Paper: Inequality and Poverty in Uruguay by Race: the Impact of Fiscal Policies (2014)
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Persistent link: http://EconPapers.repec.org/RePEc:tul:ceqwps:19
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