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

Author

Listed:
  • Florencia Amábile

    (Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República)

  • Marisa Bucheli

    (Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República)

  • Máximo Rossi

    (Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República)

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.

Suggested Citation

  • Florencia Amábile & Marisa Bucheli & Máximo Rossi, 2014. "Inequality and Poverty in Uruguay by Race: the Impact of Fiscal Policies," Documentos de Trabajo (working papers) 0214, Department of Economics - dECON.
    • Handle: RePEc:ude:wpaper:0214
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    File URL: https://hdl.handle.net/20.500.12008/2264
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    References listed on IDEAS

    as
    1. Marisa Bucheli & Nora Lustig & Máximo Rossi & Florencia Amábile, 2014. "Social Spending, Taxes, and Income Redistribution in Uruguay," Public Finance Review, , vol. 42(3), pages 413-433, May.
    2. John E. Roemer, 2002. "Equality of opportunity: A progress report," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 19(2), pages 455-471.
    3. Nora Lustig & Sean Higgins, 2012. "Fiscal Incidence, Fiscal Mobility and the Poor: a New Approach," Working Papers 265, ECINEQ, Society for the Study of Economic Inequality.
    4. Sean Higgins & Nora Lustig & Julio Ramirez & Billy Swanson, 2013. "Social Spending, Taxes and Income Redistribution in Paraguay," Working Papers 1311, Tulane University, Department of Economics.
    5. Nora Lustig, 2016. "Commitment to Equity Handbook. A Guide to Estimating the Impact of Fiscal Policy on Inequality and Poverty," Commitment to Equity (CEQ) Working Paper Series 1301, Tulane University, Department of Economics.
    6. Nora Lustig & Sean Higgins, 2012. "Commitment to Equity Assessment (CEQ): Estimating the Incidence of Social Spending, Subsidies and Taxes Handbook," Working Papers 1219, Tulane University, Department of Economics.
    7. Marisa Bucheli & Rafael Porzecanski, 2008. "Racial Inequality in the Uruguayan Labor Market:An analysis of wage differentials between Afrodescendants and whites," Documentos de Trabajo (working papers) 1508, Department of Economics - dECON.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    inequality; poverty; race; fiscal policy; direct transfers.;
    All these keywords.

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies

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