Social Transfers and Income Inequality in Bulgaria

Svilena Mihaylova and Silviya Bratoeva-Manoleva

Bulgarian Economic Papers from Faculty of Economics and Business Administration, Sofia University St Kliment Ohridski - Bulgaria // Center for Economic Theories and Policies at Sofia University St Kliment Ohridski

Abstract: The paper analyzes the distributional effects of social transfers in Bulgaria in the period 2000-2014, using income inequality decomposition by factor components. The results suggest that social transfers mitigate income inequality, but this effect varies depending on the type of transfer. Pensions exert the strongest influence due to their significant share in total income, which also rises over time. Family allowances are pro-poor in nature, but because of their small share in beneficiaries’ total income, their impact on overall inequality is much weaker. “Other social benefits” have the weakest inequality-reducing effect, which is due to their higher concentration towards the richest decile and increasing share in total income.

Keywords: social transfers; income inequality; redistribution (search for similar items in EconPapers)
JEL-codes: D31 H55 I38 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2016-10, Revised 2016-10
New Economics Papers: this item is included in nep-eur
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Persistent link: https://EconPapers.repec.org/RePEc:sko:wpaper:bep-2016-10

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