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Globalization and the Role of Public Transfers in Redistributing Income in Latin America and the Caribbean

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  • Emmanuel Skoufias
  • Kathy Lindert
  • Joseph Shapiro

Abstract

This paper focuses on measuring the extent to which publicly subsidized transfers in Latin America and the Caribbean redistribute income. The redistributive power of 56 transfers in eight countries is measured by their simulated impacts on poverty and inequality, and by their distributional characteristic. Our findings suggest that public transfers can be effective instruments to redistribute income to the poor. Yet frequently they have not managed to do so. The redistributive impacts from social insurance are limited-and even regressive in some countries.

Suggested Citation

  • Emmanuel Skoufias & Kathy Lindert & Joseph Shapiro, 2009. "Globalization and the Role of Public Transfers in Redistributing Income in Latin America and the Caribbean," WIDER Working Paper Series RP2009-02, World Institute for Development Economic Research (UNU-WIDER).
  • Handle: RePEc:unu:wpaper:rp2009-02
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    References listed on IDEAS

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    1. repec:wbk:wbpubs:14902 is not listed on IDEAS
    2. World Bank, 2003. "Poverty in Guatemala," World Bank Publications - Reports 14862, The World Bank Group.
    3. Emmanuel Skoufias & Vincenzo Di Maro, 2008. "Conditional Cash Transfers, Adult Work Incentives, and Poverty," Journal of Development Studies, Taylor & Francis Journals, vol. 44(7), pages 935-960.
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    7. Skoufias, Emmanuel & Gonzalez-Cossio, Teresa, 2008. "The Impacts of Cash and In-Kind Transfers on Consumption and Labor Supply: Experimental Evidence from Rural Mexico," Policy Research Working Paper Series 4778, The World Bank.
    8. Angus Deaton & Salman Zaidi, 1999. "Guidelines for Constructing Consumption Aggregates For Welfare Analysis," Working Papers 217, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
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    11. David Coady & Emmanuel Skoufias, 2004. "On the Targeting and Redistributive Efficiencies of Alternative Transfer Instruments," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 50(1), pages 11-27, March.
    12. Emmanuel Skoufias & David P. Coady, 2007. "Are the Welfare Losses from Imperfect Targeting Important?," Economica, London School of Economics and Political Science, vol. 74(296), pages 756-776, November.
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    2. Armando Barrientos, 2013. "Politicising poverty in Latin America in the light of Rawls’ ‘strains of commitment’ argument for a social minimum," Global Development Institute Working Paper Series 18213, GDI, The University of Manchester.
    3. Andres Irarrazaval, 2022. "The Fiscal Origins of Comparative Inequality levels: An Empirical and Historical Investigation," Working Papers wp531, University of Chile, Department of Economics.
    4. Susana HERRERO-OLARTE & Mateo LOAIZA, 2021. "Structural Or Conjunctural Changes To Reduce Poverty In Ecuador?," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 21(2), pages 19-36.
    5. Akerkar, Supriya & Joshi, P.C. & Fordham, Maureen, 2016. "Cultures of Entitlement and Social Protection: Evidence from Flood Prone Bahraich, Uttar Pradesh, India," World Development, Elsevier, vol. 86(C), pages 46-58.
    6. Alderman, Harold & Aurino, Elisabetta & Baffour, Priscilla Twumasi & Gelli, Aulo & Turkson, Festus Ebo & Wong, Brad, 2025. "Assessing the overall benefits of programs enhancing human capital and equity: a new method with an application to school meals," Economics of Education Review, Elsevier, vol. 106(C).
    7. Xabier Garcia-Fuente, 2021. "The Paradox of Redistribution in Time. Social Spending in 53 Countries, 1967-2018," LIS Working papers 815, LIS Cross-National Data Center in Luxembourg.
    8. Sebastian Sirén, 2024. "Making Growth Inclusive? Do Government Transfers Moderate the Effect of Economic Growth on Absolute and Relative Child Poverty?," LIS Working papers 879, LIS Cross-National Data Center in Luxembourg.
    9. Armando Barrientos & Dario Debowicz & Ingrid Woolard, 2014. "Antipoverty Transfers and Inclusive Growth in Brazil," Global Development Institute Working Paper Series iriba_wp04, GDI, The University of Manchester.
    10. Armando Barrientos & Stephan Dietrich & Franziska Gassmann & Daniele Malerba, 2022. "Prioritarian rates of return to antipoverty transfers," Journal of International Development, John Wiley & Sons, Ltd., vol. 34(3), pages 550-563, April.

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