Tax-benefit Microsimulation and Income Redistribution in Ecuador

The aim of this paper is to explore the redistributive effects of taxes and benefits in Ecuador using two different approaches: direct use of reported taxes and benefits in survey data, and use of simulated taxes and benefits. We make use of representative household microdata from ENIGHUR 2011-2012, which contains detailed information on labour and nonlabour income, taxes and social insurance contributions, public pensions, social benefits and expenditure, as well as personal and household characteristics.