Latin America and the Social Contract : Patterns of Social Spending and Taxation

This article analyzes the incidence of social spending and taxation by income quintile for seven Latin American countries, the United Kingdom, and the United States. Absolute levels of social spending in Latin America are fairly flat across income quintiles, a pattern similar to that in the United S...

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Main Authors: Breceda, Karla, Rigolini, Jamele, Saavedra, Jaime
Format: Journal Article
Language:EN
Published: 2012
Subjects:
Online Access:http://hdl.handle.net/10986/5449
id okr-10986-5449
recordtype oai_dc
spelling okr-10986-54492021-04-23T14:02:22Z Latin America and the Social Contract : Patterns of Social Spending and Taxation Breceda, Karla Rigolini, Jamele Saavedra, Jaime Personal Income, Wealth, and Their Distributions D310 Taxation and Subsidies: Incidence H220 Personal Income and Other Nonbusiness Taxes and Subsidies includes inheritance and gift taxes H240 Economic Development: Human Resources Human Development Income Distribution Migration O150 Fiscal and Monetary Policy in Development O230 Capitalist Systems: Political Economy P160 This article analyzes the incidence of social spending and taxation by income quintile for seven Latin American countries, the United Kingdom, and the United States. Absolute levels of social spending in Latin America are fairly flat across income quintiles, a pattern similar to that in the United States and differing from the more progressive pattern of spending in the United Kingdom. The structure of taxation in Latin America is also similar to that of the United States. Because of high income inequality in Latin America and the US, the rich bear of most the burden, whereas the United Kingdom taxes the middle class to a greater extent. The analysis suggests that many Latin American countries are trapped in a vicious cycle in which the rich resist the expansion of the welfare state (because they bear most of its tax burden without receiving commensurate benefits), and their opposition to its expansion in turn maintains long-term inequalities. 2012-03-30T07:32:53Z 2012-03-30T07:32:53Z 2009 Journal Article Population and Development Review 00987921 http://hdl.handle.net/10986/5449 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article Latin America & Caribbean
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language EN
topic Personal Income, Wealth, and Their Distributions D310
Taxation and Subsidies: Incidence H220
Personal Income and Other Nonbusiness Taxes and Subsidies
includes inheritance and gift taxes H240
Economic Development: Human Resources
Human Development
Income Distribution
Migration O150
Fiscal and Monetary Policy in Development O230
Capitalist Systems: Political Economy P160
spellingShingle Personal Income, Wealth, and Their Distributions D310
Taxation and Subsidies: Incidence H220
Personal Income and Other Nonbusiness Taxes and Subsidies
includes inheritance and gift taxes H240
Economic Development: Human Resources
Human Development
Income Distribution
Migration O150
Fiscal and Monetary Policy in Development O230
Capitalist Systems: Political Economy P160
Breceda, Karla
Rigolini, Jamele
Saavedra, Jaime
Latin America and the Social Contract : Patterns of Social Spending and Taxation
geographic_facet Latin America & Caribbean
relation http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description This article analyzes the incidence of social spending and taxation by income quintile for seven Latin American countries, the United Kingdom, and the United States. Absolute levels of social spending in Latin America are fairly flat across income quintiles, a pattern similar to that in the United States and differing from the more progressive pattern of spending in the United Kingdom. The structure of taxation in Latin America is also similar to that of the United States. Because of high income inequality in Latin America and the US, the rich bear of most the burden, whereas the United Kingdom taxes the middle class to a greater extent. The analysis suggests that many Latin American countries are trapped in a vicious cycle in which the rich resist the expansion of the welfare state (because they bear most of its tax burden without receiving commensurate benefits), and their opposition to its expansion in turn maintains long-term inequalities.
format Journal Article
author Breceda, Karla
Rigolini, Jamele
Saavedra, Jaime
author_facet Breceda, Karla
Rigolini, Jamele
Saavedra, Jaime
author_sort Breceda, Karla
title Latin America and the Social Contract : Patterns of Social Spending and Taxation
title_short Latin America and the Social Contract : Patterns of Social Spending and Taxation
title_full Latin America and the Social Contract : Patterns of Social Spending and Taxation
title_fullStr Latin America and the Social Contract : Patterns of Social Spending and Taxation
title_full_unstemmed Latin America and the Social Contract : Patterns of Social Spending and Taxation
title_sort latin america and the social contract : patterns of social spending and taxation
publishDate 2012
url http://hdl.handle.net/10986/5449
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