Latin America and the Social Contract : Patterns of Social Spending and Taxation
This paper presents an incidence analysis of both social spending and taxation for seven Latin American countries, the United Kingdom, and the United States. The analysis shows that Latin American countries are headed de facto toward a minimalist w...
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| Format: | Policy Research Working Paper |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2008/04/9372221/latin-america-social-contract-patterns-social-spending-taxation http://hdl.handle.net/10986/6763 |
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okr-10986-67632021-04-23T14:02:31Z Latin America and the Social Contract : Patterns of Social Spending and Taxation Breceda, Karla Rigolini, Jamele Saavedra, Jaime ABSOLUTE AMOUNTS ADDED TAXES BENEFICIARIES CALCULATIONS CASH TRANSFERS COMMODITIES COMMODITY CONSUMER CONSUMER SURPLUS CONTRIBUTION CONTRIBUTIONS CORPORATE TAXES CROSS SUBSIDIES DEVELOPMENT BANK ECONOMIC DEVELOPMENT ECONOMIC MANAGEMENT ECONOMIC PERFORMANCE ECONOMIC TRENDS EVASION FOOD PROGRAMS FOOD SUBSIDIES GDP GDP PER CAPITA GOVERNMENT SPENDING HEALTH SPENDING HOUSEHOLD INCOME HOUSEHOLD SURVEYS HOUSING HOUSING SUBSIDIES INCIDENCE ANALYSIS INCOME INCOME DISTRIBUTION INCOME GROUPS INCOME LEVEL INCOME TAX INCOME TAXES INDIVIDUAL ACCOUNTS INDIVIDUAL SAVINGS INEQUALITY LATIN AMERICAN LEVY NATURAL RESOURCES PENSION PENSION CONTRIBUTIONS PENSION SYSTEM PENSION SYSTEMS PENSIONS PER CAPITA INCOME POOR POVERTY REDUCTION PRIMARY EDUCATION PROPERTY TAXES PROVISIONS PUBLIC PUBLIC ECONOMICS PUBLIC GOODS PUBLIC RESOURCES PUBLIC SERVICE PUBLIC SPENDING PUBLIC TRANSFER RETIREMENT SAFETY NETS SOCIAL ASSISTANCE SOCIAL PROTECTION SOCIAL SAFETY NETS SOCIAL SECURITY SOCIAL SECURITY CONTRIBUTIONS SOCIAL SERVICES SOCIAL SPENDING SPECIFIC TAXES TAX BREAKS TAX COLLECTION TAX ENFORCEMENT TAX EVASION TAX REFORM TAX REFORMS TAX REVENUES TAX SHIFTING TAXATION WELFARE PROGRAMS WELFARE STATE WELFARE STATES This paper presents an incidence analysis of both social spending and taxation for seven Latin American countries, the United Kingdom, and the United States. The analysis shows that Latin American countries are headed de facto toward a minimalist welfare state similar to the one in the United States, rather than toward a stronger, European-like welfare state. Specifically, both in Latin America and in the United States, social spending remains fairly flat across income quintiles. On the taxation side, high income inequality causes the rich to bear most of the taxation burden. This causes a vicious cycle where the rich oppose the expansion of the welfare state (as they bear most of its burden without receiving much back), which in turn maintains long-term inequalities. The recent increased socioeconomic instability in many Latin American countries shows nonetheless a real need for a stronger welfare state, which, if unanswered, may degenerate into short-term and unsustainable policies. The case of Chile suggests that a way out from this apparent dead end can be found, as elites may be willing to raise their contribution to social spending if this can lead to a more stable social contract. 2012-05-31T18:15:27Z 2012-05-31T18:15:27Z 2008-04 http://documents.worldbank.org/curated/en/2008/04/9372221/latin-america-social-contract-patterns-social-spending-taxation http://hdl.handle.net/10986/6763 English Policy Research Working Paper No. 4604 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Latin America & Caribbean |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ABSOLUTE AMOUNTS ADDED TAXES BENEFICIARIES CALCULATIONS CASH TRANSFERS COMMODITIES COMMODITY CONSUMER CONSUMER SURPLUS CONTRIBUTION CONTRIBUTIONS CORPORATE TAXES CROSS SUBSIDIES DEVELOPMENT BANK ECONOMIC DEVELOPMENT ECONOMIC MANAGEMENT ECONOMIC PERFORMANCE ECONOMIC TRENDS EVASION FOOD PROGRAMS FOOD SUBSIDIES GDP GDP PER CAPITA GOVERNMENT SPENDING HEALTH SPENDING HOUSEHOLD INCOME HOUSEHOLD SURVEYS HOUSING HOUSING SUBSIDIES INCIDENCE ANALYSIS INCOME INCOME DISTRIBUTION INCOME GROUPS INCOME LEVEL INCOME TAX INCOME TAXES INDIVIDUAL ACCOUNTS INDIVIDUAL SAVINGS INEQUALITY LATIN AMERICAN LEVY NATURAL RESOURCES PENSION PENSION CONTRIBUTIONS PENSION SYSTEM PENSION SYSTEMS PENSIONS PER CAPITA INCOME POOR POVERTY REDUCTION PRIMARY EDUCATION PROPERTY TAXES PROVISIONS PUBLIC PUBLIC ECONOMICS PUBLIC GOODS PUBLIC RESOURCES PUBLIC SERVICE PUBLIC SPENDING PUBLIC TRANSFER RETIREMENT SAFETY NETS SOCIAL ASSISTANCE SOCIAL PROTECTION SOCIAL SAFETY NETS SOCIAL SECURITY SOCIAL SECURITY CONTRIBUTIONS SOCIAL SERVICES SOCIAL SPENDING SPECIFIC TAXES TAX BREAKS TAX COLLECTION TAX ENFORCEMENT TAX EVASION TAX REFORM TAX REFORMS TAX REVENUES TAX SHIFTING TAXATION WELFARE PROGRAMS WELFARE STATE WELFARE STATES |
| spellingShingle |
ABSOLUTE AMOUNTS ADDED TAXES BENEFICIARIES CALCULATIONS CASH TRANSFERS COMMODITIES COMMODITY CONSUMER CONSUMER SURPLUS CONTRIBUTION CONTRIBUTIONS CORPORATE TAXES CROSS SUBSIDIES DEVELOPMENT BANK ECONOMIC DEVELOPMENT ECONOMIC MANAGEMENT ECONOMIC PERFORMANCE ECONOMIC TRENDS EVASION FOOD PROGRAMS FOOD SUBSIDIES GDP GDP PER CAPITA GOVERNMENT SPENDING HEALTH SPENDING HOUSEHOLD INCOME HOUSEHOLD SURVEYS HOUSING HOUSING SUBSIDIES INCIDENCE ANALYSIS INCOME INCOME DISTRIBUTION INCOME GROUPS INCOME LEVEL INCOME TAX INCOME TAXES INDIVIDUAL ACCOUNTS INDIVIDUAL SAVINGS INEQUALITY LATIN AMERICAN LEVY NATURAL RESOURCES PENSION PENSION CONTRIBUTIONS PENSION SYSTEM PENSION SYSTEMS PENSIONS PER CAPITA INCOME POOR POVERTY REDUCTION PRIMARY EDUCATION PROPERTY TAXES PROVISIONS PUBLIC PUBLIC ECONOMICS PUBLIC GOODS PUBLIC RESOURCES PUBLIC SERVICE PUBLIC SPENDING PUBLIC TRANSFER RETIREMENT SAFETY NETS SOCIAL ASSISTANCE SOCIAL PROTECTION SOCIAL SAFETY NETS SOCIAL SECURITY SOCIAL SECURITY CONTRIBUTIONS SOCIAL SERVICES SOCIAL SPENDING SPECIFIC TAXES TAX BREAKS TAX COLLECTION TAX ENFORCEMENT TAX EVASION TAX REFORM TAX REFORMS TAX REVENUES TAX SHIFTING TAXATION WELFARE PROGRAMS WELFARE STATE WELFARE STATES Breceda, Karla Rigolini, Jamele Saavedra, Jaime Latin America and the Social Contract : Patterns of Social Spending and Taxation |
| geographic_facet |
Latin America & Caribbean |
| relation |
Policy Research Working Paper No. 4604 |
| description |
This paper presents an incidence
analysis of both social spending and taxation for seven
Latin American countries, the United Kingdom, and the United
States. The analysis shows that Latin American countries are
headed de facto toward a minimalist welfare state similar to
the one in the United States, rather than toward a stronger,
European-like welfare state. Specifically, both in Latin
America and in the United States, social spending remains
fairly flat across income quintiles. On the taxation side,
high income inequality causes the rich to bear most of the
taxation burden. This causes a vicious cycle where the rich
oppose the expansion of the welfare state (as they bear most
of its burden without receiving much back), which in turn
maintains long-term inequalities. The recent increased
socioeconomic instability in many Latin American countries
shows nonetheless a real need for a stronger welfare state,
which, if unanswered, may degenerate into short-term and
unsustainable policies. The case of Chile suggests that a
way out from this apparent dead end can be found, as elites
may be willing to raise their contribution to social
spending if this can lead to a more stable social contract. |
| format |
Publications & Research :: Policy Research Working Paper |
| 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 |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2008/04/9372221/latin-america-social-contract-patterns-social-spending-taxation http://hdl.handle.net/10986/6763 |
| _version_ |
1764400828043493376 |