Progressive tax policy and informal labor in developing economies
Bibliographic Data
| ID | 6263602 |
|---|---|
| Authors | Néstor Castañeda (0000-0003-1324-7144, University College London), David Doyle (0000-0002-0157-0115, University of Oxford) |
| Year | 2019 |
| Volume | 32 |
| Issue | 4 |
| Pages | 595-618 |
| Publication date | 2019-10-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Governance (JOURNAL) |
| Journal identifiers | ISSN: 0952-1895 • E-ISSN: 1468-0491 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/gove.12390 |
| OpenAlex | W2920027282 |
| Language | EN |
| Citations received | 11 |
| References cited | 56 |
Governments in many industrializing democracies face difficult policy trade‐offs. Liberalization and informality have placed electoral pressure on them to expand noncontributory social spending. However, governments in developing democracies face constraints when attempting to finance this expansion. In some countries, the informal labor market is very large, thereby undermining the revenue that can be collected through income tax. We argue that this has given rise to a paradoxical situation. Left governments in developing democracies with large informal labor markets have a strong electoral incentive to expand welfare regimes to previously excluded outsiders, but to fiscally underwrite this expansion, they have increasingly been forced to fund their redistributive strategies via a regressive policy instrument, indirect consumption taxation. We examine this argument for a sample of 17 Latin American countries between the years 1990 and 2016. Our results suggest that labor informality forces left governments to turn to indirect taxation
Argument (complex analysis · Developing country · Economic growth · Economic policy · Economics · Incentive · Informal sector · Labour economics · Latin Americans · Liberalization · Macroeconomics · Market economy · Political science · Tax revenue · Welfare · Fiscal Policies and Political Economy · Fiscal Policy and Economic Growth · Taxation and Compliance Studies
Mobile money and the social contract
Building a tax state in the 21st century
Fairness and Tax Morale in Developing Countries
Remittances and Revenue in Latin America, 1990–2017
Information, Equal Treatment, and Support for Regressive Taxation
Perceived Inequality as an Impediment to Mass Taxation
Opting Out of the Social Contract
The Pink Tide and Income Inequality in Latin America
Labor Informality and the Vote in Latin America
From 'beasts of burden' to 'backbone of society
Export taxes in Argentina
Political Competition, Partisanship, and Policy Making in Latin American Public Utilities
How is the Slowdown Affecting Households in Latin America and the Caribbean?
The Politics of Market Discipline in Latin America
Private Wealth and Public Revenue in Latin America
New Tools in Comparative Political Economy
Fractionalization
Social Policy Expansion in Latin America
Regressive Taxation and the Welfare State
Partisan Politics in the Global Economy
Welfare and Party Politics in Latin America
Political Parties, Growth and Equality
Social Democracy Inside Out
Democracy and the Left
Hierarchical Capitalism in Latin America
Bolsa Família and the Shift in Lula’s Electoral Base, 2002–2006
Is the Informal Sector Politically Different? (Null) Answers from Latin America
The Power of Preferences
Financing Security Through Elite Taxation
Origins and Consequences of Changes in U.S. Corporate Taxation, 1981-1998
Globalization, Domestic Politics, and Social Spending in Latin America
Presidents, Parties, and Policy Competition
Business Coordination and Tax Politics
Partisanship and Policy Choice
Understanding Interaction Models
Globalization, Taxation, and Burden-Shifting in Latin America
Dependency Revisited
Flatliners
Death of the Partisan? Globalization and Taxation in South America, 1990—2006
Inequality and Personal Income Taxation
Redistribution Under the Right in Latin America
Internationalization and Changes in Tax Policy in OECD Countries
The Distributive Politics of Enforcement
The New Political Economy of Taxation in Advanced Capitalist Democracies
Social Democracy Constrained
Labor Informality in Latin America and the Caribbean
Between exclusion and calculating solidarity? Preferences for private versus public welfare provision and the size of the informal sector
Coalitional realignment and the adoption of non-contributory social insurance programmes in Latin America
Party system nationalization, presidential coalitions, and government spending
Informality and Development
Business Political Power
The Roots of Brazil's Heavy Taxation
Political Parties and Macroeconomic Policy
Forbearance
Welfare Regimes in Latin America
Business Power and Social Policy
Labour markets and the (hyphenated) welfare regime in Latin America
| Unique citing works | 11 |
|---|---|
| Citations per year | 1,83 |
| Citation span | 2020 - 2026 (7) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 11 |