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Performance of tax-benefit systems amid COVID-19 crises in sub-Saharan Africa: A comparative perspective

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Listed:
  • Jesse Lastunen
  • Adnan Abdulaziz Shahir
  • Pia Rattenhuber
  • Kwabena Adu-Ababio
  • Rodrigo Oliveira

Abstract

We examine the distributional effects of the COVID-19 pandemic and associated tax-benefit measures in seven sub-Saharan African countries, focusing on the onset of the crisis. We evaluate impacts on disposable incomes, considering variations across income groups; assess the effectiveness of tax-benefit policies in mitigating income losses; and analyse the influence of these measures on income-based poverty and inequality. We find notable reductions in disposable incomes, concentrated among higher-income households, and moderate increases in headcount poverty rates and poverty gaps.

Suggested Citation

  • Jesse Lastunen & Adnan Abdulaziz Shahir & Pia Rattenhuber & Kwabena Adu-Ababio & Rodrigo Oliveira, 2023. "Performance of tax-benefit systems amid COVID-19 crises in sub-Saharan Africa: A comparative perspective," WIDER Working Paper Series wp-2023-130, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2023-130
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    References listed on IDEAS

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    1. Olivier Bargain & Tim Callan, 2010. "Analysing the effects of tax-benefit reforms on income distribution: a decomposition approach," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 8(1), pages 1-21, March.
    2. François Bourguignon & Amedeo Spadaro, 2006. "Microsimulation as a tool for evaluating redistribution policies," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 4(1), pages 77-106, April.
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    Keywords

    COVID-19; Income distribution; Poverty; Inequality; Africa; Tax-benefit systems;
    All these keywords.

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