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Learning from the

Author

Listed:
  • Bargain, Olivier

    (Université Montesquieu Bordeaux IV)

  • Jara Tamayo, Holguer Xavier

    (University of Essex)

  • Kwenda, Prudence

    (Wits University)

  • Ntuli, Miracle

    (Wits University)

Abstract

Redistributive systems in Africa are still in their infancy but are constantly expanding in order to finance increasing public spending. This paper aims at characterizing the redistributive potential of six African countries: Ghana, Zambia, Mozambique, Tanzania, Ethiopia and South Africa. These countries show contrasted situations in terms of income distribution. We assess the role of tax-benefit systems to explain these differences. Using newly developed tax-benefit microsimulations for all six countries, we produce counterfactual simulations whereby the system of the most (least) redistributive country is applied to the population of all other countries. In this way, we can decompose the total country difference in income distribution between the contribution of tax-benefit policies versus the contribution of other factors (market income distributions, demographics, etc.). This analysis contributes to the recent literature on the redistributive role of socio-fiscal policies in developing countries and highlights the role of microsimulation techniques to characterize how different African countries can learn from each other to improve social protection and reduce inequality.

Suggested Citation

  • Bargain, Olivier & Jara Tamayo, Holguer Xavier & Kwenda, Prudence & Ntuli, Miracle, 2018. "Learning from the," IZA Discussion Papers 12017, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp12017
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    References listed on IDEAS

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    4. World Bank, 2015. "World Development Indicators 2015," World Bank Publications - Books, The World Bank Group, number 21634, December.
    5. Herwig Immervoll & Horacio Levy & José Ricardo Nogueira & Cathal O´Donoghue & Rozane Bezerra de Siqueira, 2005. "The Impact of Brazil´s Tax-Benefit System on Inequality and Poverty," Ibero America Institute for Econ. Research (IAI) Discussion Papers 117, Ibero-America Institute for Economic Research.
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    More about this item

    Keywords

    poverty; tax-benefit policy; microsimulation; inequality; Africa;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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