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Are private transfers poverty and inequality reducing? Household level evidence from Bulgaria

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  • Dimova, Ralitza
  • Wolff, François-Charles

Abstract

With the use of household level data from Bulgaria, treatment effect models and decomposition techniques, we explore the determinants of private transfers and their welfare implications. Our results are consistent with the altruistic hypothesis in that transfers allocate towards households with observed and unobserved characteristics correlated with relatively low levels of welfare. The receipt of transfers improves the living standards of the recipients and decreases their probability of being poor. At the same time, private transfers have only a small positive impact on the expenditure gap between households receiving transfers and those not receiving transfers. Inequality in living standards is primarily driven by unobserved characteristics and to a smaller extent by factors such as education and experience. Journal of Comparative Economics 36 (4) (2008) 584-598.

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  • Dimova, Ralitza & Wolff, François-Charles, 2008. "Are private transfers poverty and inequality reducing? Household level evidence from Bulgaria," Journal of Comparative Economics, Elsevier, vol. 36(4), pages 584-598, December.
    • Handle: RePEc:eee:jcecon:v:36:y:2008:i:4:p:584-598
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    8. Ralitza Dimova & Ira N. Gang, 2015. "Female Engagement in Commercial Agriculture, Interventions and Welfare in Malawi: What Works for the Poorest?," Departmental Working Papers 201522, Rutgers University, Department of Economics.
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    10. Aristei, David & Perugini, Cristiano, 2012. "Inequality and reforms in transition countries," Economic Systems, Elsevier, vol. 36(1), pages 2-10.
    11. Hong Tan & Zhihua Dong & Haomiao Zhang, 2023. "The impact of intergenerational support on multidimensional poverty in old age: empirical analysis based on 2018 CLHLS data," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-13, December.
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