A Gendered Fiscal Incidence Analysis for Ethiopia : Evidence from Individual-Level Data
Using the Commitment to Equity methodology, this study investigates differences in the welfare impact of taxes and government spending on men and women in Ethiopia. It analyzes the incidence, progressivity, and pro-poorness of various taxes and transfers and their effects on income mobility, poverty, and inequality using individual-level data from the 2018/19 Ethiopia Socioeconomic Survey. The results show that the fiscal system as a whole is progressive, equalizing, and poverty-reducing. It moved about one in five individuals from one income group to another, and more women than men transitioned to a higher income group, making them relatively better off. However, some of its elements have differential effects on gender equality. Direct and indirect taxes have differential inequality-reducing and poverty-increasing effects for men and women. The inequality-reducing effects are stronger for men, whereas the poverty-increasing effects of some of them, including informal taxes and value-added taxes, are higher for women. On the transfer side, direct social protection transfers and indirect transfers, mainly spending on primary education and health services, promote gender equality better than other types of government spending.
| Main Authors: | , , |
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| Format: | Working Paper biblioteca |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2022-07
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| Subjects: | WELFARE IMPACT, COMMITMENT TO EQUITY METHODOLOGY, GENDER EQUALITY, DIRECT TAX, INDIRECT TAX, GENDERED EFFECT OF TAXES, SOCIAL PROTECTION TRANSFER, HEALTH SERVICES TRANSFER, EDUCATION TRANSFER, FISCAL INCIDENCE ANALYSIS, |
| Online Access: | http://documents.worldbank.org/curated/en/099455107262215691/IDU0d077d06b03a97049080ae2b0107c93e09591 http://hdl.handle.net/10986/37776 |
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| Summary: | Using the Commitment to Equity
methodology, this study investigates differences in the
welfare impact of taxes and government spending on men and
women in Ethiopia. It analyzes the incidence, progressivity,
and pro-poorness of various taxes and transfers and their
effects on income mobility, poverty, and inequality using
individual-level data from the 2018/19 Ethiopia
Socioeconomic Survey. The results show that the fiscal
system as a whole is progressive, equalizing, and
poverty-reducing. It moved about one in five individuals
from one income group to another, and more women than men
transitioned to a higher income group, making them
relatively better off. However, some of its elements have
differential effects on gender equality. Direct and indirect
taxes have differential inequality-reducing and
poverty-increasing effects for men and women. The
inequality-reducing effects are stronger for men, whereas
the poverty-increasing effects of some of them, including
informal taxes and value-added taxes, are higher for women.
On the transfer side, direct social protection transfers and
indirect transfers, mainly spending on primary education and
health services, promote gender equality better than other
types of government spending. |
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