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Macroeconomic Determinants of Income Inequality in Bulgaria

Author

Listed:
  • Silviya Bratoeva-Manoleva

    (University of Economics – Varna, Department of Economics)

Abstract

Income inequality in Bulgaria increased noticeably over the period 1990-2015. This paper aims to identify the main macroeconomic determinants of income inequality. We find that GDP growth and structural changes in Bulgarian economy are among the determinants which deepen income inequality. The statistically significant negative estimate of the government expenditures on social protection means that an increase in social transfers mitigate income inequality. The empirical results show that inflation, foreign direct investment and education are statistically insignificant in affecting income inequality.

Suggested Citation

  • Silviya Bratoeva-Manoleva, 2017. "Macroeconomic Determinants of Income Inequality in Bulgaria," Bulgarian Economic Papers bep-2017-07, 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 2017.
    • Handle: RePEc:sko:wpaper:bep-2017-07
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    File URL: https://www.uni-sofia.bg/index.php/eng/content/download/180266/1253492/file/BEP-2017-07.pdf
    File Function: First version, 2017
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    Citations

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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. 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.

    More about this item

    Keywords

    income inequality; OLS regression; transition economies;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • P24 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - National Income, Product, and Expenditure; Money; Inflation

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