Fiscal policy, income redistribution and poverty reduction in Argentina

Produced by: 
Tulane University
Available from: 
August 2021
Paper author(s): 
Juan Cruz Lopez Del Valle
Caterina Brest López
Joaquín Campabadal
Julieta Ladronis
Nora Lustig
Valentina Martínez Pabón
Mariano Tommasi
Topic: 
Poverty - Inequality - Aid Effectiveness
Year: 
2021

We implement a fiscal incidence analysis for Argentina with data from the 2017 national household survey. We find that Argentina’s fiscal system reduces inequality and poverty more than it is the case in many other comparable countries. This result is driven more by the size of the state (as measured by social spending to GDP) than by the progressivity of the fiscal system. While there are spending items that are quite progressive and even pro-poor, taxes are unequalizing and a number of subsidies benefit disproportionately the rich.

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