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Globalization and the Role of Public Transfers in Redistributing Income in Latin America and the Caribbean

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  • Emmanuel Skoufias
  • Kathy Lindert
  • Joseph Shapiro

Abstract

This paper focuses on measuring the extent to which publicly subsidized transfers in Latin America and the Caribbean redistribute income. The redistributive power of 56 transfers in eight countries is measured by their simulated impacts on poverty and inequality, and by their distributional characteristic. Our findings suggest that public transfers can be effective instruments to redistribute income to the poor. Yet frequently they have not managed to do so. The redistributive impacts from social insurance are limited-and even regressive in some countries.

Suggested Citation

  • Emmanuel Skoufias & Kathy Lindert & Joseph Shapiro, 2009. "Globalization and the Role of Public Transfers in Redistributing Income in Latin America and the Caribbean," WIDER Working Paper Series RP2009-02, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:rp2009-02
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    References listed on IDEAS

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    1. David Coady & Margaret Grosh & John Hoddinott, 2004. "Targeting of Transfers in Developing Countries : Review of Lessons and Experience," World Bank Publications - Books, The World Bank Group, number 14902.
    2. World Bank, 2003. "Poverty in Guatemala," World Bank Publications - Reports 14862, The World Bank Group.
    3. Emmanuel Skoufias & Vincenzo Di Maro, 2008. "Conditional Cash Transfers, Adult Work Incentives, and Poverty," Journal of Development Studies, Taylor & Francis Journals, vol. 44(7), pages 935-960.
    4. Afonso, Luís Eduardo & Fernandes, Reynaldo, 2005. "Uma Estimativa dos Aspectos Distributivos da Previdência Social no Brasil," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 59(3), July.
    5. David Coady & Emmanuel Skoufias, 2004. "On the Targeting and Redistributive Efficiencies of Alternative Transfer Instruments," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 50(1), pages 11-27, March.
    6. Deaton, A. & Zaidi, S., 1999. "Guidelines for Constructing Consumption Aggregates for Welfare Analysis," Papers 192, Princeton, Woodrow Wilson School - Development Studies.
    7. Angus Deaton & Salman Zaidi, 2002. "Guidelines for Constructing Consumption Aggregates for Welfare Analysis," World Bank Publications, The World Bank, number 14101, April.
    8. Emmanuel Skoufias & David P. Coady, 2007. "Are the Welfare Losses from Imperfect Targeting Important?," Economica, London School of Economics and Political Science, vol. 74(296), pages 756-776, November.
    9. Rofman, Rafael, 2005. "Social security coverage in Latin America," Social Protection Discussion Papers and Notes 32754, The World Bank.
    10. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
    11. Skoufias, Emmanuel & Gonzalez-Cossio, Teresa, 2008. "The Impacts of Cash and In-Kind Transfers on Consumption and Labor Supply: Experimental Evidence from Rural Mexico," Policy Research Working Paper Series 4778, The World Bank.
    12. Margaret Grosh & Carlo del Ninno & Emil Tesliuc & Azedine Ouerghi, 2008. "For Protection and Promotion : The Design and Implementation of Effective Safety Nets," World Bank Publications - Books, The World Bank Group, number 6582.
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    Cited by:

    1. Armando Barrientos, 2013. "Politicising poverty in Latin America in the light of Rawls’ ‘strains of commitment’ argument for a social minimum," Global Development Institute Working Paper Series 18213, GDI, The University of Manchester.
    2. Susana HERRERO-OLARTE & Mateo LOAIZA, 2021. "Structural Or Conjunctural Changes To Reduce Poverty In Ecuador?," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 21(2), pages 19-36.
    3. Akerkar, Supriya & Joshi, P.C. & Fordham, Maureen, 2016. "Cultures of Entitlement and Social Protection: Evidence from Flood Prone Bahraich, Uttar Pradesh, India," World Development, Elsevier, vol. 86(C), pages 46-58.
    4. Xabier Garcia-Fuente, 2021. "The Paradox of Redistribution in Time. Social Spending in 53 Countries, 1967-2018," LIS Working papers 815, LIS Cross-National Data Center in Luxembourg.
    5. Armando Barrientos & Dario Debowicz & Ingrid Woolard, 2014. "Antipoverty Transfers and Inclusive Growth in Brazil," Global Development Institute Working Paper Series iriba_wp04, GDI, The University of Manchester.
    6. Armando Barrientos & Stephan Dietrich & Franziska Gassmann & Daniele Malerba, 2022. "Prioritarian rates of return to antipoverty transfers," Journal of International Development, John Wiley & Sons, Ltd., vol. 34(3), pages 550-563, April.

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