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Unpublished Paper
Social Spending, Taxes and Income Redistribution in Uruguay
dECON-Working Papers (2012)
  • Maximo Rossi
  • Nora Lustig, Tulane University of Louisiana
  • Marisa Bucheli
  • Florencia Amabile
Abstract

How much redistribution does Uruguay accomplish through social spending and taxes? How progressive are revenue collection and social spending? A standard fiscal incidence analysis shows that Uruguay achieves a nontrivial reduction in inequality and poverty when all taxes and transfers are combined. In comparison with other five countries in Latin America, it ranks first (poverty reduction) and second (inequality reduction), and first in terms of poverty reduction effectiveness and third in terms of overall (including ransfers in kind) inequality reduction effectiveness. Direct taxes are progressive and indirect taxes are regressive. Social spending on direct transfers, contributory pensions, education and health is quite progressive in absolute terms except for tertiary education, which is almost neutral in relative terms.

Keywords
  • poverty,
  • inequality,
  • Uruguay,
  • social spending,
  • taxes
Disciplines
Publication Date
September 21, 2012
Citation Information
Maximo Rossi, Nora Lustig, Marisa Bucheli and Florencia Amabile. "Social Spending, Taxes and Income Redistribution in Uruguay" dECON-Working Papers (2012)
Available at: http://works.bepress.com/maximo_rossi/57/