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Inequality and Poverty in Uruguay by Race: the Impact of Fiscal Policies

Florencia Amábile (), Marisa Bucheli () and Maximo Rossi ()
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Florencia Amábile: Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República

No 214, Documentos de Trabajo (working papers) from Department of Economics - dECON

Abstract: 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 affectracial 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)
New Economics Papers: this item is included in nep-lam, nep-ltv, nep-pbe and nep-pub
Date: 2014-02
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Working Paper: Inequality and poverty in Uruguay by race: the impact of fiscal policies (2015) Downloads
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