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Are Income Floors Viable In Sub-Saharan Africa?

Author

Listed:
  • Jon Jellema

    (CEQ Institute)

  • Nora Lustig

    (Stone Center for Latin American Studies, Department of Economics, Tulane University, Commitment to Equity Institute (CEQI))

  • Valentina Martinez Pabon

Abstract

In this paper, we build on results generated from policy scenarios attempting to generate sufficient internal resources for providing targeted and universal basic income packages in 9 different countries in sub-Saharan Africa. We add more countries from the same region as well as account explicitly for "missing" incomes, subsidy expenditures, and tax revenues in a way that reduces the burden of increased revenue collection on the survey population). While the new scenarios create smaller burdens from increased revenue collection on poor and vulnerable populations, it is still the case that setting income floors equivalent to international poverty lines funded by internally-generated revenues is often not feasible for two reasons: there is extreme reranking of individuals (from pre- to post-fiscal income) and the tax burden on the nonpoor would be significantly higher.

Suggested Citation

  • Jon Jellema & Nora Lustig & Valentina Martinez Pabon, 2019. "Are Income Floors Viable In Sub-Saharan Africa?," Commitment to Equity (CEQ) Working Paper Series 86, Tulane University, Department of Economics.
  • Handle: RePEc:tul:ceqwps:86
    as

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    File URL: http://repec.tulane.edu/RePEc/ceq/ceq86.pdf
    File Function: First version, 2019
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    References listed on IDEAS

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    More about this item

    Keywords

    fiscal impoverishment; fiscal policy; fiscal incidence; social spending; inequality; poverty; taxes;
    All these keywords.

    JEL classification:

    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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