ITD Global Conference - Tax and InequalitySocial Cohesion in a Shifting World - LaunchIntergenerational Aspectsof InequalityMario PezziniOECD Development CentreNew Dehli, India, 7-9 December 2011International Tax Dialogue and Ministry of Finance, Government of India
The aspirations of the emerging middle class Billion OECD countries non-OECD economies 6 5 4 3 80% 68% 2 46% 50% 30% 1 70% 54% 50% 32% 20% 0 2000 2010 2012 2020 2030Source: PGD 2012 , based on Kharas (2010)
Social mobility: correlation of parent/child educationSource: OECD (2010) based on Hertz et al. (2007)
Duality and the emerging middle class (Brazil)The ‘missing middle’ in social protection coverage: informal middle class workers Population by income quintile and labour status (2006) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1 2 3 4 5 Out of labour force Unemployed Informal employee Self-employed Skilled self-employed Formal employee Source: da Costa et al (2011).
Policies can make a difference for inequalityGini coefficients before and after taxes and transfers in developing countries Inequality before taxes and transfers Inequality after taxes and transfers 60 50 40 30 20 10 0 Mexico Brazil OECD-24 avg. Peru Chile Argentina Colombia Source: OECD (2008a and 2008b).
Burundi Guinea-Bissau Congo Dem. Rep. Sierra Leone Ethiopia Niger Central Afr. Rep. Malawi* Liberia Madagascar Rwanda Mozambique Uganda Guinea Tanzania Burkina Faso Togo Gambia Mali Comoros** Ghana** ODA per capita Benin AFRICAN MEDIAN São Tomé & Principe Côte dIvoire Mauritania Tax revenue per capita KenyaSource: OECD/AfDB/UNECA (2010), African Economic Outlook. Cameroon Senegal Zambia Djibouti Chad Sudan Lesotho Egypt Nigeria AFRICAN AVERAGE Morocco Resources for development in Africa Cape Verde Tunisia Swaziland Namibia Mauritius Congo South Africa Botswana Angola Algeria Gabon Seychelles Equatorial Guinea Libya 0 400 800 1200 1600 2000 USD
With higher trust, tax evasion is less acceptable… 0.5 0.4 0.3Tax evasion is never justifiable 0.2 (fraction of respondents) 0.1 0.0 -0.1 -0.2 -0.3 -0.4 -0.5 -0.3 -0.2 -0.1 0.1 0.2 0.3 Interpersonnal trust indicator Source: PGD 2012.
ITD Global Conference - Tax and InequalitySocial Cohesion in a Shifting World - LaunchThe floor is yoursNew Dehli, India, 7-9 December 2011International Tax Dialogue and Ministry of Finance, Government of India