Social safety net and the poor during the transition : the case of Bulgaria
Using data from the 1992 Bulgarian household budget survey, the authors analyze the structure of income in Bulgaria, identifying who the poor are and how they are reached by the social safety net. Their main findings about household incomes: (a) Social transfers provide an extremely large component - 24 percent - of household income per capita. That is roughly on a par with the share in other Eastern European countries but more than 40 percent higher than the share of the Organization for Economic Cooperation and Development (OECD) countries. (b) Wage earnings have declined as a source of income, reflecting the counteraction of the state sector. Wage income in Bulgaria has declined to only half the OECD level. (c) Income from self-employment has increased, reflecting the surge in small-scale retail establishments. Income is considerably less concentrated in Bulgaria than in other lower-middle-income countries. The author's main findings about the poor (the bottom 20 percent in terms of household income): The head of household in a poor home tends to be older, a woman, poorly educated, and unemployed. Poor households are not necessarily larger households in Bulgaria, unlike in other developing countries. The sources of income in poor Bulgarian households reflect other findings: (a) The poor depend for more than half their income on social benefits (especially pensions), indicating the importance of the social safety net. (b) The social safety net is not well targeted. Most social benefits are pro-poor, in the sense that they improve income distribution, but many benefits accrue to better-off households. There is substantial scope for better distribution of income. The authors conclude that comprehensive reform of social benefits is needed, focusing on pensions, unemployment benefits, child allowances, and social assistance.
|Date of creation:||31 May 1995|
|Contact details of provider:|| Postal: 1818 H Street, N.W., Washington, DC 20433|
Phone: (202) 477-1234
Web page: http://www.worldbank.org/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Lipton, Michael & Ravallion, Martin, 1995.
"Poverty and policy,"
Handbook of Development Economics,
in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 41, pages 2551-2657
- Lipton, Michael & Ravallion, Martin, 1993. "Poverty and policy," Policy Research Working Paper Series 1130, The World Bank.
- Ravallion, M., 1992. "Poverty Comparisons - A Guide to Concepts and Methods," Papers 88, World Bank - Living Standards Measurement.
- UNICEF Innocenti Research Centre. MONEE project, 1993. "Public Policy and Social Conditions," Papers remore93/8, Regional Monitoring Report. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:1450. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.