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Poverty Line and the Guaranteed Minimal Payments – Methodological Aspects of Defining and Binding

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  • Vassil Tsanov
  • Lyubomir Tomev

Abstract

Methodology for defining poverty line and its binding to the guaranteed minimal payments is suggested. The methodology for calculation poverty line is based on the combination of two approaches – the relative and the absolute. The first one ensures connection of poverty line to the de facto income distribution into the society and the second – ensuring the minimal living standard. Methodological solutions are presented for defining guaranteed minimal payments (minimal salary/wage, social pension and social benefits), which reflex directly or indirectly the dynamics of poverty line.

Suggested Citation

  • Vassil Tsanov & Lyubomir Tomev, 2006. "Poverty Line and the Guaranteed Minimal Payments – Methodological Aspects of Defining and Binding," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 7, pages 121-133.
    • Handle: RePEc:bas:econth:y:2006:i:7:p:121-133
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    Cited by:

    1. Vassil Tzanov, 2010. "Bulgaria: A Shift in Minimum Wage Policy," Chapters, in: Daniel Vaughan-Whitehead (ed.), The Minimum Wage Revisited in the Enlarged EU, chapter 2, Edward Elgar Publishing.

    More about this item

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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