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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.

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Bibliographic Info

Article provided by Bulgarian Academy of Sciences - Economic Research Institute in its journal Economic Studies.

Volume (Year): (2010)
Issue (Month): 4 ()
Pages: 39-64

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Handle: RePEc:bas:econst:y:2010:i:4:p:39-64

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  1. Bogdan Bogdanov & Vassil Tsanov, 2004. "Measuring Poverty in Bulgaria," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 3-27.
  2. Branko Milanovic, 1999. "Explaining the increase in inequality during transition," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 7(2), pages 299-341, July.
  3. Mehtabul Azam, 2012. "A distributional analysis of social group inequality in rural India," Journal of International Development, John Wiley & Sons, Ltd., vol. 24(4), pages 415-432, 05.
  4. Cowell, Frank A & Jenkins, Stephen P, 1995. "How Much Inequality Can We Explain? A Methodology and an Application to the United States," Economic Journal, Royal Economic Society, vol. 105(429), pages 421-30, March.
  5. Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January.
  6. Anthony Shorrocks & Guanghua Wan, 2005. "Spatial decomposition of inequality," Journal of Economic Geography, Oxford University Press, vol. 5(1), pages 59-81, January.
  7. Mihaly Simai, 2006. "Poverty and Inequality in Eastern Europe and the CIS Transition Economies," Working Papers 17, United Nations, Department of Economics and Social Affairs.
  8. Angus Deaton, 2004. "Measuring poverty," Working Papers 170, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
  9. Heshmati, Almas, 2004. "A Review of Decomposition of Income Inequality," IZA Discussion Papers 1221, Institute for the Study of Labor (IZA).
  10. Pasquale Tridico, 2010. "Growth, Inequality and Poverty in Emerging and Transition Economies," Transition Studies Review, Springer, vol. 16(4), pages 979-1001, February.
  11. Georgi Shopov, 2006. "Targeted Social Support Programmes in Bulgaria - Characteristics, Functioning, Administrative Costs," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 19-43.
  12. Shorrocks, Anthony F, 1984. "Inequality Decomposition by Population Subgroups," Econometrica, Econometric Society, vol. 52(6), pages 1369-85, November.
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