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dc.titleSplitting the Bill: Taxing and Spending to Close Ethnic and Racial Gaps in Latin America
dc.contributor.authorLustig, Nora
dc.contributor.authorMorrison, Judith
dc.contributor.authorRatzlaff, Adam
dc.contributor.orgunitGender and Diversity Division
dc.coverageLatin America
dc.date.available2019-01-25T00:00:00
dc.date.issue2019-01-25T00:00:00
dc.description.abstractEthnic and racial gaps in economic outcomes, labor opportunities and access to basic services, such as education and health remain a challenge throughout Latin America. Taxes and public spending are two effective tools governments have at their disposal to help close these gaps. However, fiscal policy tools are underutilized to reduce inequality in Latin America as compared to developed (OECD member) economies. Done in collaboration with the Commitment to Equity Institute, this is one of the first studies disaggregated by ethnicity and race to analyze patterns of government spending and taxation, and is focused on five countries: Bolivia, Brazil, Guatemala, Mexico and Uruguay. The study finds that taxes and spending are mostly colorblind in all countries, and therefore do relatively little to reduce pre-existing gaps in poverty across ethnic and racial lines. Moreover, the study observes that direct (income) taxes and direct transfers, such as conditional cash transfer programs, along with education (primary and secondary) and health services, are mostly progressive in ethno-racial terms. Meaning Afro-descendants and indigenous peoples receive more of the benefits -and bare less of the costs- compared to their share of the population. Whereas, indirect (sales) taxes, subsidies, tertiary education spending (apart from Brazil), and pension programs are far less progressive, and can be even regressive in ethno-racial terms. Meaning Afro-descendants and indigenous peoples pay more than their share. The negative distributional effects for education and pension programs are related to lower access to education and formal labor market opportunities for indigenous peoples and Afro-descendants in the countries analyzed.
dc.format.extent83
dc.identifier.doihttp://dx.doi.org/10.18235/0001429
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Splitting_the_Bill_Taxing_and_Spending_to_Close_Ethnic_and_Racial_Gaps_in_Latin_America.pdf
dc.identifier.urlhttps://publications.iadb.org/publications/spanish/document/Cómo_dividimos_la_cuenta_Impuestos_y_gasto_público_para_cerrar_brechas_étnicas_y_raciales_en_América_Latina.pdf
dc.language.isoen
dc.mediumAdobe PDF
dc.publisherInter-American Development Bank
dc.subjectGender Equality
dc.subjectGender Gap
dc.subjectGender Discrimination
dc.subjectRacial Discrimination
dc.subjectAfro-Descendants
dc.subjectEthnic Wage Gap
dc.subjectEthnicity
dc.subjectIndigenous People
dc.subject.jelcodeO54 - Latin America • Caribbean
dc.subject.jelcodeO23 - Fiscal and Monetary Policy in Development
dc.subject.jelcodeJ15 - Economics of Minorities, Races, Indigenous Peoples, and Immigrants • Non-labor Discrimination
dc.subject.jelcodeH50 - National Government Expenditures and Related Policies: General
dc.subject.keywordstaxes;public finance;Government Expenditure;Fiscal Incidence;Fiscal Spending;Racial and Ethnic Gaps;IndigenousPeoples;African Descendants;Government Transfers;DevelopmentPolicy
dc.typeMonographs
idb.identifier.pubnumberIDB-MG-00590
idb.operationBK-C1040
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