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Spatially blind but regionally progressive? Effects of a universal basic income on regional welfare inequality in Brazil

Author

Listed:
  • Silveira Neto, Raul da Mota

    (Universidade Federal de Pernambuco (PIMES/UFPE))

  • de Siqueira, Rozane Bezerra

    (Universidade Federal de Pernambuco (PIMES/UFPE))

  • Candido, Carlos Henrique de Sousa

    (Universidade Federal de Pernambuco (PIMES/UFPE))

  • Nogueira, José Ricardo

    (Universidade Federal de Pernambuco (PIMES/UFPE))

Abstract

We employ a microsimulation model to investigate the effects of the current Brazilian tax-benefit system, and of a policy that combines a Universal Basic Income with a flat-rate income tax on the regional inequality of per capita income. Our results indicate that, despite its regionally progressive character for per capita disposable income, the current system of taxes and monetary benefits does not significantly change the level of Brazilian regional income inequality. However, the introduction of a Universal Basic Income combined with a flat-rate income tax, which replaces current individual income taxes and monetary transfers, results in a significant reduction in inequality in the distribution of per capita disposable income among Brazilian states.

Suggested Citation

  • Silveira Neto, Raul da Mota & de Siqueira, Rozane Bezerra & Candido, Carlos Henrique de Sousa & Nogueira, José Ricardo, 2024. "Spatially blind but regionally progressive? Effects of a universal basic income on regional welfare inequality in Brazil," Revista Brasileira de Estudos Regionais e Urbanos, Associação Brasileira de Estudos Regionais e Urbanos (ABER), vol. 18(1), pages 1-23.
    • Handle: RePEc:ris:rberur:0205
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    References listed on IDEAS

    as
    1. Ali Enami & Ugo Gentilini & Patricio Larroulet & Nora Lustig & Emma Monsalve & Siyu Quan & Jamele Rigolini, 2023. "Universal Basic Income Programs: How Much Would Taxes Need to Rise? Evidence for Brazil, Chile, India, Russia, and South Africa," Journal of Development Studies, Taylor & Francis Journals, vol. 59(9), pages 1443-1463, September.
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    4. Leff, Nathaniel H., 1972. "Desenvolvimento econômico e desigualdade regional: origens do caso brasileiro," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 26(1), January.
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    More about this item

    Keywords

    Universal Basic Income; Regional inequality; Microsimulation;
    All these keywords.

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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