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The Impact of Taxes and Transfers on Poverty and Income Distribution in South Africa 2014/2015

Author

Listed:
  • Maya GOLDMAN
  • Ingrid WOOLARD
  • Jon JELLEMA

Abstract

This paper applies the Commitment to Equity (CEQ) Assessment Framework to the 2014/15 Living Conditions Survey for South Africa to analyse the progressivity of the main tax and social spending programs and quantify their impact on poverty and inequality. The tax and social spending system is progressive - the burden of taxes falls on the richest in South Africa and social spending results in sizable increases in the incomes of the poor. Reductions in poverty and inequality are the largest achieved in the emerging market countries that have so far been included in the CEQ.

Suggested Citation

  • Maya GOLDMAN & Ingrid WOOLARD & Jon JELLEMA, 2020. "The Impact of Taxes and Transfers on Poverty and Income Distribution in South Africa 2014/2015," Working Paper 148aae17-521b-428b-85de-b, Agence française de développement.
    • Handle: RePEc:avg:wpaper:en11943
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    References listed on IDEAS

    as
    1. Marco Carreras & Chandu Dachapalli & Giulia Mascagni, 2017. "Effective corporate tax burden and firm size in South Africa: A firm-level analysis," WIDER Working Paper Series wp-2017-162, World Institute for Development Economic Research (UNU-WIDER).
    2. Alan Fuchs & Patricio V. Marquez & Sheila Dutta & Fernanda Gonzalez Icaza, 2019. "Is Tobacco Taxation Regressive? Evidence on Public Health, Domestic Resource Mobilization, and Equity Improvements," World Bank Publications - Reports 31575, The World Bank Group.
    3. Higgins, Sean & Lustig, Nora, 2016. "Can a poverty-reducing and progressive tax and transfer system hurt the poor?," Journal of Development Economics, Elsevier, vol. 122(C), pages 63-75.
    4. Marco Carreras & Purnachandar Dachapalli & Giulia Mascagni, 2017. "Effective corporate tax burden and firm size in South Africa: A firm-level analysis," WIDER Working Paper Series 162, World Institute for Development Economic Research (UNU-WIDER).
    5. Ruth Hill & Gabriela Inchauste & Nora Lustig & Eyasu Tsehaye & Tassew Woldehanna, 2017. "A Fiscal Incidence Analysis for Ethiopia," Commitment to Equity (CEQ) Working Paper Series 41, Tulane University, Department of Economics.
    6. World Bank Group, 2018. "Overcoming Poverty and Inequality in South Africa," World Bank Publications - Reports 29614, The World Bank Group.
    7. Lara Ibarra,Gabriel & Sinha,Nistha & Fayez,Rana Nayer Safwat & Jellema,Jon Robbert, 2019. "Impact of Fiscal Policy on Inequality and Poverty in the Arab Republic of Egypt," Policy Research Working Paper Series 8824, The World Bank.
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    Cited by:

    1. Maya Goldman & Ihsaan Bassier & Joshua Budlender & Lindi Mzankomo & Ingrid Woolard & Murray Leibbrandt, 2021. "Simulation of options to replace the special COVID-19 Social Relief of Distress grant and close the poverty gap at the food poverty line," WIDER Working Paper Series wp-2021-165, World Institute for Development Economic Research (UNU-WIDER).
    2. Nora Lustig & Jon Jellema & Valentina Martinez Pabon, 2023. "Are Budget Neutral Income Floors Fiscally Viable in Sub-Saharan Africa?," Journal of African Economies, Centre for the Study of African Economies, vol. 32(Supplemen), pages 202-227.

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    Keywords

    Afrique du Sud;

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics

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