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Did living standards actually improve under state socialism? Real wages in Bulgaria, 1924-1989

Author

Listed:
  • Matthias Morys

    (University of York)

  • Martin Ivanov

    (Sofia University)

Abstract

We challenge the view that Centrally Planned Economies functioned well until the early 1970s, delivering high economic growth and better living standards. Judged by real wages as the most widely used historical living standard indicator, only in the 1970s did Bulgarian living standards surpass levels achieved already four decades earlier. Our findings are particularly discomforting for the rural population which was the big loser of collectivization and forced industrialization policies after 1947. Wages increased throughout the 1970s and the 1980s, but far less so than Maddison’s GDP per capita estimates which are often used as a proxy for living standards.

Suggested Citation

  • Matthias Morys & Martin Ivanov, 2024. "Did living standards actually improve under state socialism? Real wages in Bulgaria, 1924-1989," Working Papers 0267, European Historical Economics Society (EHES).
    • Handle: RePEc:hes:wpaper:0267
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    References listed on IDEAS

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    More about this item

    Keywords

    real wages; state socialism; structural transformation;
    All these keywords.

    JEL classification:

    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • N14 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: 1913-
    • N54 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Europe: 1913-
    • N64 - Economic History - - Manufacturing and Construction - - - Europe: 1913-
    • P2 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies
    • P51 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems

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