**Table 3: Fiscal mobility matrices from market income plus pensions to consumable income**

|||**B. R**|**owpercentage**|**distribution o**|**fpopulation**||||
|---|---|---|---|---|---|---|---|---|
|**Initial/en**|**ding income concept**|||**Co**<br>|**nsumable inco**|**me**<br>|||
||||||||||
|**and i**|**ncome groups**|**Ultra-poor**|**Extreme poor **|<sup>**oerate**</sup><br>**poor**|**Vulnerable**|**e**<br>**class**|**Wealthy**|**Total**|
|**e**<br>**s**|**Ultra-poor**|**30%**|39%|16%|14%|0%|0%|100%|
|**com**<br>**ion**|**Extreme poor**|0%|**31%**|45%|24%|0%|0%|100%|
|**in**<br>**ens**|**Moderate poor**|0%|0%|**47%**|53%|0%|0%|100%|
|**ket**<br>**s p**|**Vulnerable**|0%|0%|0%|**93%**|7%|0%|100%|
|**Mar**<br>**plu**|**Middle class**|0%|0%|0%|2%|**98%**|0%|100%|
||**Wealthy**|0%|0%|0%|0%|6%|**94%**|100%|
|**Initial/en**|**ding income concept**|**A. T**|**otalpercentage**<br>|**distribution**<br>**Co**<br>|**ofpopulation**<br>**nsumable inco**|**me**<br>|||
|||||<sup>**Md**</sup>||**Middl**|||
|**and i**|**ncome groups**|**Ultra-poor**|**Extreme poor **|<sup>**oerate**</sup>|**Vulnerable**|**e**|**Wealthy**|**Total**|
|||||<br>**poor**||**class**|||
|**lus**|**Ultra-poor**|**0.2%**|0.3%|0.1%|0.1%|0.0%|0.0%|**0.8%**|
|**e p**<br>|**Extreme poor**|0.0%|**0.6%**|0.9%|0.5%|0.0%|0.0%|**2.0%**|
|**om**<br>**ons**|**Moderate poor**|0.0%|0.0%|**2.2%**|2.5%|0.0%|0.0%|**4.7%**|
|**inc**<br>**nsi**|**Vulnerable**|0.0%|0.0%|0.0%|**29.8%**|2.4%|0.0%|**32.2%**|
|**ket**<br>**pe**|**Middle class**|0.0%|0.0%|0.0%|0.9%|**52.7%**|0.0%|**53.6%**|
|**ar**|**Wealthy**|0.0%|0.0%|0.0%|0.0%|0.4%|**6.3%**|**6.6%**|
|**M**|**Total**|**0.2%**|**0.9%**|**3.3%**|**33.8%**|**55.5%**|**6.3%**|**100.0%**|

_Source_ : Author’s elaboration based on Martinez-Aguilar and Ortiz-Juarez (2016).

Overall, the net effect of fiscal interventions in Chile is both equalizing and poverty-reducing, yet it is unknown the extent to which such interventions make the pre-fiscal poor either poorer or better off. In order to explore the extent to which a fiscal system like Chile’s hurts and benefits the poor, Higgins and Lustig (2016) developed a set of innovative measures to capture the magnitude of the so-called fiscal impoverishment (FI) and the fiscal gains to the poor (FGP). The authors define an individual as fiscal impoverished if she/he is poor according to her/his post-fiscal income (i.e., after taxes and transfers), and such income is lower than her/his pre-fiscal income (i.e., the amount paid in taxes is higher than the amount received in transfers). On the other hand, an individual experiences fiscal gains when she/he is poor according to her/his pre-fiscal income (i.e., before taxes and transfers) and such income is lower than her/his post-fiscal income (i.e., the amount received in transfers is higher than the amount paid in taxes). In addition to the headcounts, the monetary amounts of FI and FGP can be computed. The first amount equals the sum of the fall in income for the pre-fiscal poor, plus the difference between the poverty line and the income (i.e., the poverty gap) for those pre-fiscal nonpoor but post-fiscal poor. The second amount is calculated as the sum of the increase in income for the pre-fiscal poor who remain poor after taxes and transfers, plus the pre-fiscal poverty gap for the pre-fiscal poor who escaped poverty after taxes and transfers.

Using both the $4/day and official moderate poverty lines, Figure 9 draws both the FI and FGP headcounts with respect to the country’s population over the x-axis, whereas the y-axis reflects the FI headcount among the post-fiscal (consumable income) poor and the FGP headcount among the prefiscal (market income plus pensions) poor —the size of the bubbles is relative to the total monetary amounts of both FI and FGP—. A first result is that fewer individuals are impoverished in comparison to the number of fiscal gainers after the intervention of taxes, subsidies and direct transfers. Using the $4/day poverty line, 1.8 percent of Chile’s population (or 31.6 percent of the post-fiscal poor) are 18