Income Distribution and Tax and Government Social Spending Policies in Developing Countries

48 Pages Posted: 10 Feb 2006

See all articles by Hamid R. Davoodi

Hamid R. Davoodi

International Monetary Fund (IMF) - Fiscal Affairs Department

Sanjeev Gupta

International Monetary Fund (IMF) - Fiscal Affairs Department

Ke-young Chu

International Monetary Fund (IMF) - Fiscal Affairs Department

Date Written: March 2000

Abstract

This paper reviews income distribution in developing (and transition) countries in recent decades. On average, before-tax income distribution in developing countries is less unequal than in industrial countries. However, unlike industrial countries, developing countries in general have not been able to use tax and transfer policies effectively to reduce income inequality. During the 1980s and 1990s, many developing countries experienced an increase in income inequality. The government health care and primary and secondary education programs in developing countries are not well targeted, but their incidence tends to be progressive.

Keywords: Income distribution, tax incidence, government social spending

JEL Classification: D31, H22, H53

Suggested Citation

Davoodi, Hamid R. and Gupta, Sanjeev and Chu, Ke-young, Income Distribution and Tax and Government Social Spending Policies in Developing Countries (March 2000). IMF Working Paper No. 00/62, Available at SSRN: https://ssrn.com/abstract=879546

Hamid R. Davoodi

International Monetary Fund (IMF) - Fiscal Affairs Department ( email )

700 19th Street, NW
Washington, DC 20431
United States

Sanjeev Gupta

International Monetary Fund (IMF) - Fiscal Affairs Department ( email )

700 19th Street, NW
Washington, DC 20431
United States

Ke-young Chu

International Monetary Fund (IMF) - Fiscal Affairs Department ( email )

700 19th Street, NW
Washington, DC 20431
United States

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