Arbeitspapier

The effects of taxation on income inequality in sub-Saharan Africa

This paper investigates the effects of taxation on income inequality in an unbalanced panel of 45 countries in sub-Saharan Africa over the period 1980-2018. We use instrumentalvariable two-stage least squares and instrumental-variable quantile regression estimates. We find that taxation widens income inequality. We also show that the increasing effects of taxation on income inequality are higher in the most unequal countries than in the least unequal countries. Furthermore, we highlight an inverse U-shaped relationship between indirect taxes and income inequality. Governments in sub-Saharan Africa should increase indirect taxes to at least 28.36 per cent of gross domestic product in order to reap the dividends in terms of reducing inequality.

Sprache
Englisch
ISBN
978-92-9267-262-1

Erschienen in
Series: WIDER Working Paper ; No. 2022/129

Klassifikation
Wirtschaft
Single Equation Models: Single Variables: Instrumental Variables (IV) Estimation
Personal Income, Wealth, and Their Distributions
Equity, Justice, Inequality, and Other Normative Criteria and Measurement
Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
Thema
income inequality
taxation
quantile regression
sub-Saharan Africa

Ereignis
Geistige Schöpfung
(wer)
Ouedraogo, Idrissa Mohamed
Dianda, Issa
Ouedraogo, Pegdwende Patrik
Ouedraogo, Rodrigue Tiraogo
Konfe, Bassirou
Ereignis
Veröffentlichung
(wer)
The United Nations University World Institute for Development Economics Research (UNU-WIDER)
(wo)
Helsinki
(wann)
2022

DOI
doi:10.35188/UNU-WIDER/2022/262-1
Handle
Letzte Aktualisierung
20.09.2024, 08:23 MESZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Ouedraogo, Idrissa Mohamed
  • Dianda, Issa
  • Ouedraogo, Pegdwende Patrik
  • Ouedraogo, Rodrigue Tiraogo
  • Konfe, Bassirou
  • The United Nations University World Institute for Development Economics Research (UNU-WIDER)

Entstanden

  • 2022

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