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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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Bibliographic Info

Article provided by Elsevier in its journal Journal of Comparative Economics.

Volume (Year): 36 (2008)
Issue (Month): 4 (December)
Pages: 584-598

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Handle: RePEc:eee:jcecon:v:36:y:2008:i:4:p:584-598

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Web page: http://www.elsevier.com/locate/inca/622864

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Keywords: Altruism Private transfers Poverty Inequality Bulgaria;

References

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Citations

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Cited by:
  1. Sumon K. Bhaumik & Ralitza Dimova & Ira N. Gang, 2013. "Is women's ownership of land a panacea in developing countries? Evidence from land-owning farm households in Malawi," William Davidson Institute Working Papers Series wp1055, William Davidson Institute at the University of Michigan.
  2. Mitrut, Andreea & Wolff, François-Charles, 2011. "Do private and public transfers received affect life satisfaction? Evidence from Romania," Journal of Economic Psychology, Elsevier, vol. 32(6), pages 969-979.
  3. Laetitia Duval & François-Charles Wolff, 2009. "Remittances matter: Longitudinal evidence from Albania," Working Papers hal-00421234, HAL.
  4. Aristei, David & Perugini, Cristiano, 2012. "Inequality and reforms in transition countries," Economic Systems, Elsevier, vol. 36(1), pages 2-10.
  5. Laetitia Duval & François-Charles Wolff, 2009. "L'effet des transferts migratoires sur la déforestation dans les pays en développement," Working Papers hal-00421222, HAL.

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