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Inequality and redistributive taxation in the Global South

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  • Andrea Vaccaro

Abstract

This paper investigates the relationship between inequality and redistributive taxation. It provides a review of existing research on the topic and a cross-country empirical analysis of this relationship. Using data from the World Income Inequality Database, Government Revenue Dataset, and other publicly available sources, it evaluates the validity of a classic political economy argument according to which higher income inequality leads to more redistributive government policies.

Suggested Citation

  • Andrea Vaccaro, 2025. "Inequality and redistributive taxation in the Global South," WIDER Working Paper Series wp-2025-31, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2025-31
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    File URL: https://www.wider.unu.edu/sites/default/files/Publications/Working-paper/PDF/wp2025-31-inequality-redistributive-taxation-Global-South.pdf
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    References listed on IDEAS

    as
    1. Baldwin, Kate & Huber, John D., 2010. "Economic versus Cultural Differences: Forms of Ethnic Diversity and Public Goods Provision," American Political Science Review, Cambridge University Press, vol. 104(4), pages 644-662, November.
    2. Andrea Vaccaro, 2022. "Ethnic dominance and exclusion: Unpacking cross-national data," WIDER Working Paper Series wp-2022-25, World Institute for Development Economic Research (UNU-WIDER).
    3. Christian Houle, 2017. "Inequality, ethnic diversity, and redistribution," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 15(1), pages 1-23, March.
    4. Christian Houle, 2017. "Inequality, ethnic diversity, and redistribution," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 15(1), pages 1-23, March.
    5. Kang, Sung Jin & Seo, Hwan-Joo, 2023. "Validity of the Meltzer and Richard hypothesis under captured democracy and policy regime hypotheses," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 1732-1749.
    6. Matz Dahlberg & Karin Edmark & Heléne Lundqvist, 2012. "Ethnic Diversity and Preferences for Redistribution," Journal of Political Economy, University of Chicago Press, vol. 120(1), pages 41-76.
    7. Moene, Karl Ove & Wallerstein, Michael, 2001. "Inequality, Social Insurance, and Redistribution," American Political Science Review, Cambridge University Press, vol. 95(4), pages 859-874, December.
    8. Elkjær, Mads Andreas & Iversen, Torben, 2023. "The Democratic State and Redistribution: Whose Interests Are Served?," American Political Science Review, Cambridge University Press, vol. 117(2), pages 391-406, May.
    9. Lucy Barnes, 2013. "Does Median Voter Income Matter? The Effects of Inequality and Turnout on Government Spending," Political Studies, Political Studies Association, vol. 61(1), pages 82-100, March.
    10. James A. Piazza, 2021. "The Impact of Rural-Urban Economic Disparities on Terrorist Organizations’ Survival and Attacks," Defence and Peace Economics, Taylor & Francis Journals, vol. 32(6), pages 726-741, August.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Redistribution; Income inequality; Ethnic inequality; Taxation; Democracy; Global south;
    All these keywords.

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