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Structural changes and wage inequality in the Bulgarian economy

Author

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  • Svilena MIHAYLOVA

    (University of Economics, Varna, Bulgaria)

  • Silviya BRATOEVA-MANOLEVA

    (University of Economics, Varna, Bulgaria)

Abstract

In light of the growing concern about the economic and social costs of high income inequality, the paper analyses wage inequality in Bulgaria in the context of the structural changes taking place in the economy. For this purpose, we first estimate wage inequality in the country over the period 2000-2016 by using the inequality decomposition method proposed by Pyatt, Chen and Fei (1980). Then, we analyse the differences in wages depending on economic activity, region and educational attainment. The results show that wages are the most significant source of income inequality in Bulgaria and that their contribution to overall inequality increases significantly during the analysed period. Furthermore, the growing role of the service sector at the expense of agriculture and industry is associated with increasing wage differences across economic sectors, regions and levels of education, which together shape the magnitude and the dynamics of wage inequality.

Suggested Citation

  • Svilena MIHAYLOVA & Silviya BRATOEVA-MANOLEVA, 2018. "Structural changes and wage inequality in the Bulgarian economy," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 9, pages 205-227, December.
    • Handle: RePEc:jes:journl:y:2018:v:9:p:205-227
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    References listed on IDEAS

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    Cited by:

    1. Adriana AnaMaria Davidescu & Tamara Maria Nae & Margareta-Stela Florescu, 2022. "Exploring the Moderation and Mediation Effects in Addressing the Main Determinants of Income Inequalities in Supporting Quality of Life: Insights from CEE Countries," IJERPH, MDPI, vol. 19(14), pages 1-28, July.
    2. Toma LANKAUSKIENE, 2019. "Productivity determinants and their contributions to productivity growth in the Baltic countries before and after their entry into the European Union: a comparative industrial perspective," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 10, pages 63-88, December.
    3. Svilena Mihaylova, 2023. "Wage Inequality in Bulgaria: Decomposition by Economic Sectors, Occupational Groups and Districts," Bulgarian Economic Papers bep-2023-05, Faculty of Economics and Business Administration, Sofia University St Kliment Ohridski - Bulgaria // Center for Economic Theories and Policies at Sofia University St Kliment Ohridski, revised Sep 2023.

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