Economics Commons^™

Inequality And Poverty In Uruguay By Race: The Impact Of Fiscal Policies, Maximo Rossi, Marisa Bucheli, Florencia Amabile

Maximo Rossi

In Uruguay the tax structure and social spending reduce inequality and poverty for the whole society (Bucheli et al. 2013). In this study we analyze the effect of fiscal policy by race considering whites, afros and indigenous. The main question of our paper is whether the reduction of inequality and poverty benefit a racial group over the others or affect racial ethnic groups equally.

The three racial groups are equally likely to be taken off extreme poverty by the direct transfer system. However, the hazard of leaving moderate poverty is lower for indigenous than for the other two groups. So …