Income Distribution and Tax, and Government Social Spending Policies in Developing Countries

Ke-Young Chu, Hamid Davoodi and Sanjeev Gupta

No wp-2000-214, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: This paper reviews income distribution in developing (and transition) countries in recent decades. On average, before-tax income distribution is less unequal in developing countries than it is in industrial countries. However, unlike industrial countries, developing countries in general have not been able to use tax and transfer policies effectively to reduce income inequality. During the 1980s and 1990s, many developing countries experienced an increase in income inequality.

Keywords: Public expenditures; Government spending policy; Income distribution; Taxation (search for similar items in EconPapers)
Date: 2000
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