Performance of tax-benefit systems amid COVID-19 crises in sub-Saharan Africa: A comparative perspective
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. The study highlights the low effectiveness of pre-existing tax-benefit policies, with coverage gaps for the informal sector and a lack of income-dependent means-tested benefits. Discretionary taxbenefit policies in Mozambique and Zambia cushioned the shock for low-income households to a small extent. Conversely, school closures in Ethiopia and Ghana suppressed the provision of school meals, adding strain to households with school-age children.
Year of publication: |
2023
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Authors: | Lastunen, Jesse ; Shahir, Adnan ; Rattenhuber, Pia ; Adu-Ababio, Kwabena ; Oliveira, Rodrigo Carvalho |
Publisher: |
Helsinki : The United Nations University World Institute for Development Economics Research (UNU-WIDER) |
Subject: | COVID-19 | income distribution | poverty | inequality | Africa |
Saved in:
freely available
Series: | WIDER Working Paper ; 2023/130 |
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Type of publication: | Book / Working Paper |
Type of publication (narrower categories): | Working Paper |
Language: | English |
ISBN: | 978-92-9267-438-0 |
Other identifiers: | 10.35188/UNU-WIDER/2023/438-0 [DOI] 1868925188 [GVK] hdl:10419/283826 [Handle] RePEc:unu:wpaper:wp-2023-130 [RePEc] |
Classification: | D31 - Personal Income, Wealth and Their Distributions ; E24 - Employment; Unemployment; Wages ; H24 - Personal Income and Other Nonbusiness Taxes and Subsidies |
Source: |
Persistent link: https://www.econbiz.de/10014477520