Inchauste, Gabriela

Global Practice on Poverty and Equity, The World Bank
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Fields of Specialization
Fiscal incidence analysis, Poverty and social impact, Economic and social mobility, Informality, Distributional analysis, Public finance, Inequality, Development economics
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Global Practice on Poverty and Equity, The World Bank
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Last updated July 12, 2023
Gabriela Inchauste is a Lead Economist in the Poverty and Equity Global Practice of the World Bank. She currently leads work on Fiscal and Social Policies for poverty reduction and shared prosperity. Her research interests revolve around the distributional impact of fiscal policy, ex-ante analysis of the distributional impacts of policy reforms, and understanding the channels through which economic growth improves labor market opportunities for poverty reduction. Prior to joining the Bank, she worked at the International Monetary Fund and the Inter-American Development Bank where she contributed to operational and analytical activities in a number of countries covering topics such as macroeconomic forecasting, public expenditure policy, poverty and social impact analysis, fiscal and debt sustainability analysis, post-disaster needs assessments, and subsidy reform.She has published articles in academic volumes and journals on fiscal policy in low-income countries, decentralization, the distributional impacts of taxes and social spending, macroeconomic shocks and the poor, the informal sector, and the role of remittances in developing countries. A Bolivian national, she holds a Ph.D. in economics from the University of Texas at Austin.

Publication Search Results

Now showing 1 - 7 of 7
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    Decomposing the Recent Inequality Decline in Latin America
    (World Bank, Washington, DC, 2013-12) Azevedo, Joao Pedro ; Inchauste, Gabriela ; Sanfelice, Viviane
    Over the past decade, 12 of 14 Latin American countries have experienced a reduction in inequality. Based on a series of counterfactual simulations, the observed changes in inequality are decomposed in order to identify the main determinants of inequality. In contrast to methods that focus on aggregate summary statistics, the method adopted in this paper generates counterfactual distributions, so that the analysis can account for changes related to demographics, occupation, labor earnings and transfers, pensions, and other nonlabor income sources. The results show that for the majority of countries in the sample, the most important contributor to the observed decline in inequality has been the relatively strong growth in labor earnings at the bottom of the income distribution. In particular, most of the reduction in inequality can be attributed to an increase in earnings per hour for the bottom of the income distribution. The paper also contributes to the literature on inequality in Latin America by providing the Shapley-Shorrocks value of this decomposition.
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    Jobs and Transitions Out of Poverty : A Literature Review
    (World Bank, Washington, DC, 2012-10) Inchauste, Gabriela
    This paper summarizes the existing literature on the links between labor and poverty reduction. The vast majority of studies find that more and better paid work is critical in lifting people out of poverty. Studies analyzing poverty dynamics and economic mobility find that improved returns to endowments, particularly the returns to human and physical capital, are critical for exiting poverty. Although non-labor incomes and demographic changes can help to lift the poor out of poverty, there is no substitute for providing an enabling environment that fosters better work and pay for the poor.
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    What Is Behind The Decline in Poverty Since 2000? Evidence from Bangladesh, Peru, and Thailand
    (World Bank, Washington, DC, 2012-10) Inchauste, Gabriela ; Olivieri, Sergio ; Saavedra, Jamie ; Winkler, Hernan
    This paper quantifies the contributions of different factors to poverty reduction observed in Bangladesh, Peru and Thailand over the last decade. In contrast to methods that focus on aggregate summary statistics, the method adopted here generates entire counterfactual distributions to account for the contributions of demographics and income from labor and non-labor sources in explaining poverty reduction. The authors find that the most important contributor was the growth in labor income, mostly in the form of farm income in Bangladesh and Thailand and non-farm income in the case of Peru. This growth in labor incomes was driven by higher returns to individual and household endowments, pointing to increases in productivity and real wages as the driving force behind poverty declines. Lower dependency ratios also helped to reduce poverty, particularly in Bangladesh. Non-labor income contributed as well, albeit to a smaller extent, in the form of international remittances in the case of Bangladesh and through public and private transfers in Peru and Thailand. Transfers are more important in explaining the reduction in extreme compared with moderate poverty.
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    Living and Leaving: Housing, Mobility and Welfare in the European Union
    (World Bank, Washington, DC, 2018-11-01) Inchauste, Gabriela ; Karver, Jonathan ; Kim, Yeon Soo ; Abdel Jelil, Mohamed
    The availability and affordability of decent housing has become an important economic and social concern in the European Union (EU), as housing price increases in metropolitan regions have often outpaced wage increases. Housing is at the heart of growing economic divides in Europe. This is because productivity growth, which comes with higher wages and better jobs, is concentrated in cities and industrial clusters. Housing is unaffordable in metropolitan centers because the construction of new homes has not kept up with demand, reducing the standard of living of low-income households, and dissuading workers from moving to the most productive regions. While policy incentives have favored homeowners since the 1970s, less attention and resources have been devoted to easing the potential barriers and market restrictions that would allow housing supply to respond to increases in demand. Across EU member states, policymakers should focus on ensuring that land use, rental and other regulations are consistent with incentives to spur residential construction. The report highlights three key recommendations for EU policymakers: earmark unused public land for housing development and speed up approval processes; invest in greenfield projects with improved transportation links from suburban areas, to ensure cities cast a wider economic net; and create public registries to improve transparency of house sale prices to help greater competition between areas.
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    The Distributional Impact of Taxes and Social Spending in Romania
    (World Bank, Washington, DC, 2018-08) Inchauste, Gabriela ; Militaru, Eva
    The combined effect of taxes and social spending in Romania helps to reduce inequality, although less so than in other European Union countries. However, the combination of direct and indirect taxes and transfers leads to an increase in poverty, as direct cash transfers to poor households are not large enough to compensate them for the burden of indirect taxes. This is especially important for rural households and families with children. Moreover, recent reductions in the rates for personal income and value-added taxes are expected to have led to an increase in inequality, as most of the tax relief accrued to the top of the income distribution. Although these changes likely helped to reduce poverty, they were an expensive way to achieve a small decline in the poverty rate. Higher and better targeted social assistance spending could have achieved better distributional results at a much lower fiscal cost. These results call for greater use of simulation tools that could inform policy makers and the public of the fiscal costs and redistributive impacts of proposed reforms.
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    The Distributional Impact of Taxes and Transfers: Evidence From Eight Developing Countries
    (Washington, DC: World Bank, 2017-08-24) Inchauste, Gabriela ; Lustig, Nora ; Inchauste, Gabriela ; Lustig, Nora
    The World Bank has partnered with the Commitment to Equity Institute at Tulane University to implement their diagnostic tool—the Commitment to Equity (CEQ) Assessment—designed to assess how taxation and public expenditures affect income inequality, poverty, and different economic groups. The approach relies on comprehensive fiscal incidence analysis, which measures the contribution of each individual intervention to poverty and inequality reduction as well as the combined impact of taxes and social spending. The CEQ Assessment provide an evidence base upon which alternative reform options can be analyzed. The use of a common methodology makes the results comparable across countries. This volume presents eight country studies that examine the distributional effects of individual programs and policy measures—and the net effect of each country’s mix of policies and programs. These case studies were produced in the context of Bank policy dialogue and have since been used to propose alternative reform options.
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    Why Do People Move across State Borders?: Evidence from Mexico
    (World Bank, Washington, DC, 2023-07-12) Saavedra, Trinidad ; Inchauste, Gabriela
    This study uses the 2020 Census to explore the determinants of interstate migration in Mexico between 2015 and 2020 and the earnings gains from migration. The study analyzes both spatial characteristics (push and pull factors in the origin and destination states) and individual factors that influence the decision to migrate and where to migrate. Push and pull factors are assessed using a gravity-type model. Individual factors are analyzed using a multinomial regression model that accounts for migration reasons. Subsequently, the study measures the impact of internal migration on labor income. Earnings gains are estimated using a double selection model that accounts simultaneously for the decisions to migrate and to work. Finally, the paper discusses some policy recommendations that could help leverage internal migration potential for improving women's labor market outcomes.