A large informal sector is a challenge for developing countries building up social protection systems. Expanding social safety nets reduces poverty, but financing them can increase the tax burden, potentially reducing availability of formal sector jobs. This paper quantifies impacts on income...

We use four novel, cross-country comparable tax-benefit microsimulation models for Ecuador, Ghana, Tanzania, and South Africa to evaluate ex ante the expansion of a universal oldage pension in a static setting. Universal pensions would significantly reduce poverty and inequality in settings in...

This study evaluates which type of benefit-a universal benefit, a proxy mean-tested benefit, or a categorical benefit- better cushions the poverty effects of income shocks in a developing economy. We compare the effectiveness of the three benefit schemes on poverty first conceptually and then by...

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...

Presumptive tax, a final tax on business income, was introduced in Uganda in 1997. The latest reform to the regime in July 2020 sought to make the system more progressive, simpler and fairer to small firms. In this work, we evaluate the reform, focusing on its revenue implications based on...

We evaluate a major personal income tax reform in Uganda that came into effect in 2012-13. The reform increased the tax-free lower threshold, increased tax rates for higher incomes, and introduced an additional highest tax band. Using the universe of pay-as-you-earn administrative data submitted...

Based on tax records data from Ecuador, we analyse gender differences in top income groups from 2008 to 2017. Ecuador represents an interesting case as it shares many trends with other countries in the region in terms of women's status in the labour market. While we observe a significant...

This paper analyses the distributional effects of the COVID-19 pandemic and related tax-benefit measures in 2020 in a cross-country comparative perspective for five African countries: Ghana, Mozambique, Tanzania, Uganda, and Zambia. We first estimate the impact of the crisis on disposable...

Low- and middle-income countries face a trade-off between raising tax revenue to strengthen social protection and creating incentives for the population to enter formal employment. However, empirical evidence on labour supply elasticities in the presence of informal employment remains scarce....

We evaluate a major personal income tax reform in Uganda that came into effect in 2012-13, contributing to the scarce literature on the effects of personal income tax reform on employees' income in a low-income country in Africa. The reform increased the tax-free lower threshold, increased tax...