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dc.titleFiscal Policy, Income Redistribution, and Poverty Reduction in Latin America
dc.contributor.authorLustig, Nora
dc.contributor.authorMartinez Pabon, Valentina
dc.contributor.authorPessino, Carola
dc.contributor.orgunitVice Presidency for Sectors and Knowledge
dc.coverageLatin America
dc.coverageLatin America
dc.date.available2023-10-27T00:10:00
dc.date.issue2023-10-27T00:10:00
dc.description.abstractThis paper uses standard fiscal incidence analysis to study how much income redistribution and poverty reduction are accomplished through the fiscal system in eighteen Latin American and Caribbean (LAC) countries. We show there is considerable heterogeneity in the income inequality and poverty-reducing power of LAC fiscal systems. While all LAC fiscal systems reduce income inequality, fiscal systems in nine LAC countries are poverty-increasing, and this startling characteristic has not improved over time. When analyzing specific fiscal elements, we find that direct taxes, direct transfers, and in-kind transfers are all equalizing, and spending on education and health is often pro-poor. Moreover, contrary to expectations, indirect taxes and subsidies are more frequently equalizing than unequalizing.
dc.format.extent68
dc.identifier.doihttp://dx.doi.org/10.18235/0005237
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Fiscal-Policy-Income-Redistribution-and-Poverty-Reduction-in-Latin-America.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.relation.seriesLatin America and Caribbean Inequality Review
dc.subjectFiscal Policy
dc.subjectTaxation
dc.subjectEquality
dc.subjectPension Systems
dc.subjectPoverty
dc.subjectTax System
dc.subject.jelcodeD31 - Personal Income, Wealth, and Their Distributions
dc.subject.jelcodeD6 - Welfare Economics
dc.subject.jelcodeE62 - Fiscal Policy
dc.subject.jelcodeH22 - Incidence
dc.subject.jelcodeI32 - Measurement and Analysis of Poverty
dc.subject.keywordsFiscal policy;Inequality;Poverty;Latin America
dc.typeWorking Papers
idb.identifier.pubnumberIDB-WP-01530
idb.operationRG-T3609
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