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Inequality and fiscal policies in Uruguay by race

Author

Listed:
  • Marisa Bucheli

    (Universidad de la Republica)

  • Maximo Rossi

    (Universidad de la Republica)

  • Florencia Amábile

    (Universidad de la Republica)

Abstract

The aim of this study is to analyze the effect of fiscal policy by race, disaggregating to consider Uruguayans with primarily European, African and indigenous ancestry. We perform an incidence analysis, an estimation of the effect of fiscal policy on the poverty exit rate and an assessment of the impact on the average ethno-racial gaps. The findings support the idea that fiscal policy reduces (but does not eliminate) ethnic gaps. This result is led by health care and educational transfers, and to a lesser degree by direct transfers. We do not consider quality issues with public services, which may affect the estimated narrowing of gaps. Finally, we find that Afro-descendants and indigenous individuals do not capture the full potential of education transfers because of their high drop-out rate.

Suggested Citation

  • Marisa Bucheli & Maximo Rossi & Florencia Amábile, 2018. "Inequality and fiscal policies in Uruguay by race," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 16(3), pages 389-411, September.
    • Handle: RePEc:kap:jecinq:v:16:y:2018:i:3:d:10.1007_s10888-017-9373-7
    DOI: 10.1007/s10888-017-9373-7
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    Cited by:

    1. Sofía Plata, 2020. "Impacto de la estructura fiscal en el tamaño de la clase media," Documentos de Trabajo (working papers) 0920, Department of Economics - dECON.

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