Sector Downsizing, Taxation, Decentralization and

The analysis of the distributional impact of policy reforms on the well-being or welfare of different stakeholder groups, particularly on the poor and vulnerable, has an important role in the elaboration and implementation of poverty reduction strategies in developing countries. In recent years this type of work has been labeled as Poverty and Social Impact Analysis (PSIA) and is increasingly implemented to promote evidence-based policy choices and fosters debate on policy reform options. While information is available on the general approach, techniques and tools for distributional analysis, each sector displays a series of specific characteristics. These have implications for the analysis of distributional impacts, including in terms of the types of impacts and transmission channels that warrant particular attention, the tools and techniques most appropriate, the data sources typically utilized, and the range of political economy factors most likely to affect the reform process. Analyzing the Distributional Impact of Reforms is the second volume in a series, and covers six key areas of policy reform that are likely to have significant effects on distribution and poverty: pension, health, labor market, public sector downsizing, taxation, and decentralization. It als