The Effects of Taxation on Income Inequality in Sub-Saharan Africa

Idrissa Ouedraogo (), Issa Dianda, Pegdwende Patrik Roland Ouedraogo, Tiraogo Rodrigue Ouedraogo and Bassirou Konfe
Additional contact information
Idrissa Ouedraogo: Thomas Sankara University
Issa Dianda: CEDRES, QGPE
Pegdwende Patrik Roland Ouedraogo: Thomas Sankara University
Tiraogo Rodrigue Ouedraogo: Thomas Sankara University
Bassirou Konfe: Thomas Sankara University

Comparative Economic Studies, 2025, vol. 67, issue 1, No 3, 84-149

Abstract: Abstract This paper investigates the effects of taxation on income inequality in an unbalanced panel of 45 countries in Sub-Saharan Africa over the period 1980–2018. We use two-stage least squares and the instrumental variables quantile regression estimates. We find that taxation widens income inequality and that the increasing effects of taxation on income inequality are higher in the most unequal countries than in the least unequal ones. The paper provides evidence that countries in Sub-Saharan Africa should improve the progressivity of their tax systems, so that taxation policy can be used to reduce income inequality.

Keywords: Income inequality; Taxation; Sub-Saharan Africa (search for similar items in EconPapers)
JEL-codes: C26 D31 O15 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1057/s41294-024-00235-z Abstract (text/html)
Access to full text is restricted to subscribers.

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: https://EconPapers.repec.org/RePEc:pal:compes:v:67:y:2025:i:1:d:10.1057_s41294-024-00235-z

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/41294/PS2

DOI: 10.1057/s41294-024-00235-z

Access Statistics for this article

Comparative Economic Studies is currently edited by Nauro Campos

More articles in Comparative Economic Studies from Palgrave Macmillan, Association for Comparative Economic Studies Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().