Assessing the Effects of Fiscal Policies on Poverty and Inequality : The Case of Uruguay

This study looks at the redistributive effects of fiscal policy -- in particular of direct taxation and expenditures -- in Uruguay. This fiscal incidence analysis applies a widely recognized methodology to household survey data and government data...

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Main Authors: Bucheli, Marisa, Lara Ibarra, Gabriel, Tuzman, Diego
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2020
Subjects:
Online Access:http://documents.worldbank.org/curated/en/998831608039660526/Assessing-the-Effects-of-Fiscal-Policies-on-Poverty-and-Inequality-The-Case-of-Uruguay
http://hdl.handle.net/10986/34943
id okr-10986-34943
recordtype oai_dc
spelling okr-10986-349432022-09-20T00:10:26Z Assessing the Effects of Fiscal Policies on Poverty and Inequality : The Case of Uruguay Bucheli, Marisa Lara Ibarra, Gabriel Tuzman, Diego FISCAL POLICY POVERTY REDUCTION INEQUALITY TAXATION SOCIAL PROGRAM SOCIAL SECURITY SYSTEM PENSION SYSTEM SOCIAL SPENDING This study looks at the redistributive effects of fiscal policy -- in particular of direct taxation and expenditures -- in Uruguay. This fiscal incidence analysis applies a widely recognized methodology to household survey data and government data for fiscal year 2017 and compares the results with the policies seen in 2009 to study the evolution of the distributional impacts of fiscal policy in the country. The study finds evidence that Uruguayan fiscal policy continues to reduce inequality, with government expenditures in the form of in-kind transfers leading to the largest decreases. While expenditures in basic education are benefitting the poorest, expenditures in tertiary education remain largely regressive. The personal income tax is found to be largely progressive, with the top quintile paying more than four-fifths of this tax. Uruguay’s fiscal policies also lead to a reduction in poverty, mainly due to well-targeted direct transfers. 2020-12-17T15:34:02Z 2020-12-17T15:34:02Z 2020-12 Working Paper http://documents.worldbank.org/curated/en/998831608039660526/Assessing-the-Effects-of-Fiscal-Policies-on-Poverty-and-Inequality-The-Case-of-Uruguay http://hdl.handle.net/10986/34943 English Policy Research Working Paper;No. 9499 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Policy Research Working Paper Publications & Research Publications & Research :: Policy Research Working Paper Latin America & Caribbean Uruguay
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic FISCAL POLICY
POVERTY REDUCTION
INEQUALITY
TAXATION
SOCIAL PROGRAM
SOCIAL SECURITY SYSTEM
PENSION SYSTEM
SOCIAL SPENDING
spellingShingle FISCAL POLICY
POVERTY REDUCTION
INEQUALITY
TAXATION
SOCIAL PROGRAM
SOCIAL SECURITY SYSTEM
PENSION SYSTEM
SOCIAL SPENDING
Bucheli, Marisa
Lara Ibarra, Gabriel
Tuzman, Diego
Assessing the Effects of Fiscal Policies on Poverty and Inequality : The Case of Uruguay
geographic_facet Latin America & Caribbean
Uruguay
relation Policy Research Working Paper;No. 9499
description This study looks at the redistributive effects of fiscal policy -- in particular of direct taxation and expenditures -- in Uruguay. This fiscal incidence analysis applies a widely recognized methodology to household survey data and government data for fiscal year 2017 and compares the results with the policies seen in 2009 to study the evolution of the distributional impacts of fiscal policy in the country. The study finds evidence that Uruguayan fiscal policy continues to reduce inequality, with government expenditures in the form of in-kind transfers leading to the largest decreases. While expenditures in basic education are benefitting the poorest, expenditures in tertiary education remain largely regressive. The personal income tax is found to be largely progressive, with the top quintile paying more than four-fifths of this tax. Uruguay’s fiscal policies also lead to a reduction in poverty, mainly due to well-targeted direct transfers.
format Working Paper
author Bucheli, Marisa
Lara Ibarra, Gabriel
Tuzman, Diego
author_facet Bucheli, Marisa
Lara Ibarra, Gabriel
Tuzman, Diego
author_sort Bucheli, Marisa
title Assessing the Effects of Fiscal Policies on Poverty and Inequality : The Case of Uruguay
title_short Assessing the Effects of Fiscal Policies on Poverty and Inequality : The Case of Uruguay
title_full Assessing the Effects of Fiscal Policies on Poverty and Inequality : The Case of Uruguay
title_fullStr Assessing the Effects of Fiscal Policies on Poverty and Inequality : The Case of Uruguay
title_full_unstemmed Assessing the Effects of Fiscal Policies on Poverty and Inequality : The Case of Uruguay
title_sort assessing the effects of fiscal policies on poverty and inequality : the case of uruguay
publisher World Bank, Washington, DC
publishDate 2020
url http://documents.worldbank.org/curated/en/998831608039660526/Assessing-the-Effects-of-Fiscal-Policies-on-Poverty-and-Inequality-The-Case-of-Uruguay
http://hdl.handle.net/10986/34943
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