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The Journal of Economic Inequality

, Volume 16, Issue 3, pp 389–411 | Cite as

Inequality and fiscal policies in Uruguay by race

  • Marisa Bucheli
  • Maximo RossiEmail author
  • Florencia Amábile
Article

Abstract

The aim of this study is to analyze the effect of fiscal policy by race, disaggregating to consider Uruguayans with primarily European, African and indigenous ancestry. We perform an incidence analysis, an estimation of the effect of fiscal policy on the poverty exit rate and an assessment of the impact on the average ethno-racial gaps. The findings support the idea that fiscal policy reduces (but does not eliminate) ethnic gaps. This result is led by health care and educational transfers, and to a lesser degree by direct transfers. We do not consider quality issues with public services, which may affect the estimated narrowing of gaps. Finally, we find that Afro-descendants and indigenous individuals do not capture the full potential of education transfers because of their high drop-out rate.

Keywords

Inequality Poverty Race Fiscal policy Direct transfers 

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Notes

Acknowledgments

This article was prepared as part of the Commitment to Equity (CEQ) project, a joint initiative of CIPR and the Department of Economics (Faculty of Social Sciences, Universidad de la República), Tulane University and the Inter-American Dialog. This study was partially financed by International Development Bank.

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Copyright information

© Springer Science+Business Media, LLC, part of Springer Nature 2018

Authors and Affiliations

  1. 1.Universidad de la RepublicaMontevideoUruguay

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