Economics at your fingertips  

The Impact of the Tax System and Social Spending in Income Redistribution and Poverty Reduction in Latin America

Nora Lustig () and Claudiney Pereira ()
Additional contact information
Claudiney Pereira: Arizona State University

Hacienda Pública Española, 2016, vol. 219, issue 4, 121-136

Abstract: How much redistribution and poverty reduction is being accomplished through the tax system and social spending in Latin America? This paper summarizes results from applying a comparable fiscal incidence analysis to nine countries: Bolivia, Brazil, Costa Rica, Ecuador, El Salvador, Guatemala, Mexico, Peru, and Uruguay. Using the Gini coefficient as an indicator, Brazil lowers income in¬equality through direct taxes and transfers the most and Guatemala lowers it the least. Public spend¬ing in education and health have higher equalizing effects than other transfers. Adding the effect of indirect taxes leaves poverty higher than market income poverty in Bolivia, Brazil, and Guatemala

Keywords: fiscal incidence; inequality; poverty; social spending; Latin America (search for similar items in EconPapers)
JEL-codes: D31 H22 I38 O54 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) ... tas/hpe/219_Art5.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

More articles in Hacienda Pública Española from IEF Contact information at EDIRC.
Bibliographic data for series maintained by Miguel Gómez de Antonio ().

Page updated 2019-08-07
Handle: RePEc:hpe:journl:y:2016:v:219:i:4:p:121-136