Fiscal Policy and Inequality in Latin America, 1960–2012

Clifton, Judith; Díaz‐Fuentes, Daniel; Revuelta, Julio

doi:10.1007/978-3-319-44621-9_16

Cited by 6 publications

(6 citation statements)

References 34 publications

(47 reference statements)

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“…However, whether social spending benefits the poor's education depends on whether tax revenues are paid for primary education (Arroyo Abad and Lindert 2017). As found by Clifton et al (2017), in the second half of the last century, Latin America's fiscal policy was hardly progressive. From the demand side, by contrast, regressive tax relatively increases (reduces) the burden of the poor (the rich), and thus vertical equity across social strata is replaced by horizontal equity within a stratum.…”

Section: Educational Inequality At the Sub-country Level And Its Detementioning

confidence: 98%

EDUCATIONAL INEQUALITY AND ITS DETERMINANTS: EVIDENCE FOR WOMEN IN NINE LATIN AMERICAN COUNTRIES, 1950s-1990s

Teng

2019

RHE / JILAEH

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This paper examines educational inequality in nine Latin American countries at the sub-country level from the 1950s to the 1990s. Educational inequality is measured by the difference in schooling years between the taller and the shorter half of the female population. Schooling years significantly increased across birth cohorts, especially before the 1980s, regardless of socio-economic stratum, region or country. However, educational inequality persisted. This finding reflects the achievement of the import substitution industrialisation era in educational development and its failure in mitigating the unequal distribution of education rooted in Latin America's social structure. Trade liberalisation and educational expansion are found to reduce educational inequality in capital and urban regions, whereas democracy and tax reform increased it. By contrast, educational inequality in rural regions was hardly influenced by policy changes. This finding urges future explorations into whether the persistence of educational inequality in rural regions is due to endemic social structure.

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Section: Educational Inequality At the Sub-country Level And Its Detementioning

confidence: 98%

EDUCATIONAL INEQUALITY AND ITS DETERMINANTS: EVIDENCE FOR WOMEN IN NINE LATIN AMERICAN COUNTRIES, 1950s-1990s

Teng

2019

RHE / JILAEH

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“…Fiscal policy directly affects inequality through tax progressivity, well-organized transfer, and the quality of public spending, indirectly affecting other factors determining income and wealth inequality (Odusola, 2019). The same result clearly showed that fiscal decentralization has significantly reduced income inequality (Feld et al, 2021;Goerl & Seiferling, 2014;Makreshanska-Mladenovska & Petrevski, 2019;Su et al, 2019), including rural and urban inequality (Chen et al, 2020;Deyin et al, 2017) On the other hand, some studies did not support the findings of previous studies, which have found that decentralization increased inequality (Clifton et al, 2017;Saputra, 2012;Sepulveda & Martinez-Vazquez, 2011;Siddique et al, 2008). Liu et al (2017) also found that fiscal decentralization tends to increase inequality due to variability in levels of economic development, equal regional distributive policies, natural resources, and infrastructure imbalances.…”

Section: Introductionmentioning

confidence: 92%

Fiscal Transfer Policies and Road Infrastructure Reduce Income Inequality in Rural-Urban Areas

Khusaini,

Mardisentosa,

Putro

2023

Etikonomi

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Fiscal transfer policies and road infrastructure are essential in reducing inequality in Indonesia. However, previous research examining the effect of fiscal transfer policies and road infrastructure still came up with inconclusive findings, thus making it necessary to conduct further research on rural, urban, and sub-national areas in Indonesia. This study examines the impact of fiscal transfer policies and road infrastructure on reducing income inequality in rural, urban, and sub-national areas. The authors utilized time-series data from 2012 to 2021 and 34 provinces. The fixed effect GLS model showed that Kuznets' hypothesis existed at rural, urban, and sub-national levels. The results also showed that the special allocations fund significantly reduced income inequality in rural, urban, and sub-national areas. However, road infrastructure was significant only in urban areas. The findings suggest that the special allocation fund policy can be expanded in scope and increased in number to accelerate the reduction in income inequality.JEL Classification: O15, L92, O18, O23

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“…The significance of this shift for the reduction of inequality cannot be overstated. Historically, Latin American countries developed regressive tax systems that benefited the economic elite (Clifton et al, 2016). As a result, and in contrast to OECD countries, the distribution of income after taxes was often more unequal than before (Goñi et al, 2008;Mahon, forthcoming).…”

Section: [Insert Table 2 Around Here]mentioning

confidence: 99%

The surprising reduction of inequality during a commodity boom: what do we learn from Latin America?

Sánchez‐Ancochea

2019

Journal of Economic Policy Reform

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Past experience and both orthodox and heterodox economic theories lead us to expect a positive relationship between income inequality and commodity booms. Yet Latin America's recent improvement in income distribution coincided with a rapid growth in commodity exports. How was this positive outcome possible? Did income distribution improve because of higher commodity revenues or despite them? This paper answers these questions-seldom explored in the recent literature-using a combination of sources. The paper shows that the reduction of inequality took place among the bottom 90 percent of the population only, while the income share of the wealthy remained stable when properly measured. The reduction in the Gini coefficients had a lot to do with (re) distributive policies that enlarged the impact of labour market outcomes. The paper concludes that political pressures forced most Latin American governments to manage the commodity boom better than in the past in the short run but did not lead to significant transformations in the region's elitedriven development model.

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Fiscal Policy and Inequality in Latin America, 1960–2012

Cited by 6 publications

References 34 publications

EDUCATIONAL INEQUALITY AND ITS DETERMINANTS: EVIDENCE FOR WOMEN IN NINE LATIN AMERICAN COUNTRIES, 1950s-1990s

EDUCATIONAL INEQUALITY AND ITS DETERMINANTS: EVIDENCE FOR WOMEN IN NINE LATIN AMERICAN COUNTRIES, 1950s-1990s

Fiscal Transfer Policies and Road Infrastructure Reduce Income Inequality in Rural-Urban Areas

The surprising reduction of inequality during a commodity boom: what do we learn from Latin America?

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