CIPR | Center For Inter-American Policy & Research

Tulane University

CEQ Working Paper No 19: Inequality And Poverty In Uruguay By Race: The Impact Of Fiscal Policies


Inequality And Poverty In Uruguay By Race: The Impact Of Fiscal Policies
Working Paper No. 19

A working document by:
Florencia Amábile
Universidad de la República in Uruguay
Marisa Bucheli
Universidad de la República in Uruguay
Máximo Rossi
Universidad de la República in Uruguay

Abstract
In Uruguay the tax structure and social spending reduce inequality and poverty for the whole society (Bucheli et al. 2013). In this study we analyze the effect of fiscal policy by race considering whites, afros and indigenous. The main question of our paper is whether the reduction of inequality and poverty benefit a racial group over the others or affect racial ethnic groups equally. The three racial groups are equally likely to be taken off extreme poverty by the direct transfer system. However, the hazard of leaving moderate poverty is lower for indigenous than for the other two groups. So the direct transfer system reduces poverty of the three groups but does not achieve to put racial groups on an equal footing. When analyzing the average income, the qualitative conclusions are on the same direction. Racial gap narrows slightly –led by in-kind transfers- and does not disappear.

Access the working document here:
Updated February 2014
CEQ Working Paper No 19: Inequality And Poverty In Uruguay By Race: The Impact Of Fiscal Policies

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