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Sources of Income Inequality: Empirical Evidence from Bulgaria

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  • Vesselin Mintchev
  • Venelin Boshnakov
  • Alexander Naydenov

Abstract

The paper contributes to the empirical research on the micro-determinants of income inequality in Southeast European transition countries. The analysis utilizes data from a representative survey of 3,300 Bulgarian households conducted in 2007 and quantifies income differentiation effects related to certain socio-demographic characteristics. Quantile regression analysis reveals positive net effects of the degree of urbanization and the number of employed in the household as well as negative effects of the number of unemployed, children, and pensioners on the per-capita income level at all parts of the income distribution. Inequality indices decomposition by subgroups identifies the type of settlement, ethnical group, the number of children and unemployed as substantial sources of income inequality in Bulgaria.

Suggested Citation

  • Vesselin Mintchev & Venelin Boshnakov & Alexander Naydenov, 2010. "Sources of Income Inequality: Empirical Evidence from Bulgaria," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 39-64.
    • Handle: RePEc:bas:econst:y:2010:i:4:p:39-64
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    Cited by:

    1. Petar Peshev & Kristina Stefanova & Ivan Bozhikin & Radostina Stamenova & Ivanina Mancheva, 2022. "Is income inequality in Bulgaria underestimated in survey data?," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 301-326.
    2. Georgi Shopov, Stefan Ivanov, 2011. "Providing and Financing the Social Services in the Community – International Experience, Bulgarian Practice, Opportunities for Changes," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 57-93.
    3. V. Tsanov & P. Ivanova & S. Panteleeva & S. Bogdanov, 2013. "GINI Country Report: Growing Inequalities and their Impacts in Bulgaria," GINI Country Reports bulgaria, AIAS, Amsterdam Institute for Advanced Labour Studies.
    4. Julia G. Dobreva, 2014. "Innovations And Industrial Development In Bulgaria," Economy & Business Journal, International Scientific Publications, Bulgaria, vol. 8(1), pages 524-529.
    5. Cut Risya Varlitya & Raja Masbar & Abd. Jamal & Muhammad Nasir, 2023. "Do Regional Macroeconomics Variables Influence the Income Inequality in Indonesia?," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 1, pages 180-199.
    6. Iva Raycheva, 2021. "Regional poverty in Bulgaria in the period 2008-2019," Papers 2104.14414, arXiv.org.

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    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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