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Impuestos negativos a la renta en Uruguay: ¿una polí­tica redistributiva alternativa?

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Listed:
  • Mery Ferrando

    (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economí­a)

  • Cristian Pérez
  • Gonzalo Salas

    (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economí­a)

Abstract

In this research we evaluate an alternative redistributive scheme for Uruguay. Specifically,we analyze the impacts on equity and efficiency of substituting the new conditional cash transfer program (Asignaciones Familiares – AFAM-) and direct taxes (personal income tax–IRFP-) by a negative income tax (INR), holding fiscal budget constant. Using microsimulations that incorporate behavioral changes, we analyze the effects of this policy change on labor supply, poverty levels and income distribution. The results show that the introduction of an INR, as designed in this study, would not have a redistributive impact higher than the current scheme. Moreover, in terms of efficiency, the policy change would have practically no impact on labor supply.

Suggested Citation

  • Mery Ferrando & Cristian Pérez & Gonzalo Salas, 2010. "Impuestos negativos a la renta en Uruguay: ¿una polí­tica redistributiva alternativa?," Documentos de Trabajo (working papers) 10-02, Instituto de Economía - IECON.
    • Handle: RePEc:ulr:wpaper:dt-02-10
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    File URL: https://hdl.handle.net/20.500.12008/4193
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    References listed on IDEAS

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    More about this item

    Keywords

    Negative income tax; labor supply; income;
    All these keywords.

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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