Age Distribution of Taxes and Social Benefits by Income Deciles: Evidence from Mexico
Iván Mejía-Guevara, University of California, Berkeley
The high unequal distribution of income in some developing countries is an important restriction for their social and economic development. How this income inequality might influence the mechanisms of taxation and distribution of social benefits is a matter of important consideration for public policy. I focus in this paper on this problem but also on the effects of the distribution by age for those kinds of transfers. In the context of the National Transfer Accounts methodology, and performing analysis for survey data, I show evidence from Mexico about the relationship between income inequality and the age allocation of transfers. The evidence indicates that only the richest decile has significant impact on age distribution of taxes and social contributions.
Presented in Poster Session 3