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Inequality and Public Policy: A Country Study for Bulgaria

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  • Nasko Dochev
  • Nikolay Markov
  • Boyko Nikolov
  • Silviya Nikolova

Abstract

This paper is an attempt for measuring the impact of public policy on the inequality in Bulgaria. An analysis based on the Bulgarian Household Budget Surveys shows that the tax burden in Bulgaria, nevertheless increasing in the upper quintiles, declined between the beginning of the transition period and the year before the EU accession. Using different inequality measures we have found that despite the limited possibilities of the data, taxation policies also contribute to some extend to inequality reduction in Bulgaria. As regards the social transfers, unemployment benefits and child allowances are found to be the main social payments reducing the inequality among Bulgarian households. Using quantile regression is found that the coefficients of the effective tax rates increase across the quintiles for the entire period. The coefficients associated with the share of VAT expenditures in the total income decrease as one moves from the lowest to the highest quintile of the consumption distribution.

Suggested Citation

  • Nasko Dochev & Nikolay Markov & Boyko Nikolov & Silviya Nikolova, 2011. "Inequality and Public Policy: A Country Study for Bulgaria," wiiw Balkan Observatory Working Papers 95, The Vienna Institute for International Economic Studies, wiiw.
    • Handle: RePEc:wii:bpaper:095
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    References listed on IDEAS

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    1. World Bank, 2002. "Bulgaria : Poverty Assessment," World Bank Publications - Reports 13868, The World Bank Group.
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    Cited by:

    1. Mihaylova Svilena & Bratoeva-Manoleva Silviya, 2017. "Social Transfers and Income Inequality in Bulgaria," South East European Journal of Economics and Business, Sciendo, vol. 12(1), pages 38-49, April.
    2. V. Tsanov & P. Ivanova & S. Panteleeva & S. Bogdanov, 2013. "GINI Country Report: Growing Inequalities and their Impacts in Bulgaria," GINI Country Reports bulgaria, AIAS, Amsterdam Institute for Advanced Labour Studies.

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