National Care System in Uruguay. Who benefits and who pays?

Produced by: 
United Nations Department of Economic and Social Affairs (UN/DESA)
Available from: 
January 2017
Paper author(s): 
Verónica Amarante
Maira Colacce
Victoria Tenenbaum
Topic: 
Education - Health
Year: 
2017

In this paper, we analyse two specific policies that make up the National Care System, a social policy being implemented in Uruguay. Through the calibration of a static tax benefit model, we estimate the distributive impact of the expansion of childcare services and home-based care for dependent elderly, both financed through a progressive direct tax on income. We discuss the importance of identifying who benefits from these services, and show that, in the Uruguayan case, the redistributive impact is very limited. Even if the benefits are significant for individual households, the overall impact is weak because the number of beneficiaries is small.

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