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Wage Inequality in Bulgaria: Decomposition by Economic Sectors, Occupational Groups and Districts

Author

Listed:
  • Svilena Mihaylova

    (University of Economics Ð Varna)

Abstract
Given the pronounced income disparities in the Bulgarian economy, the paper explores wage inequality across economic sectors, occupational groups and districts in the country between 2008 and 2021. Using the between-group component of the Theil's T Statistic, the analysis reveals an overall upward trend in the evolution of wage inequality across sectors, occupational groups and districts. The largest positive contributor to inter-sectoral wage inequality is the highest paid information and communication sector. In terms of the wage disparities between occupational categories, the group of the managers has the largest weight. Finally, at a district level, the capital is the greatest positive contributor to between-district wage inequality, due to offering the highest average wage, accounting for around one third of the employment in the country and boasting a concentration of the highest-paid economic activities.

Suggested Citation

  • 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.
    • Handle: RePEc:sko:wpaper:bep-2023-05
    as

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    File URL: https://uni-sofia.bg/index.php/eng/content/download/295338/1923139/file/BEP-2023-05.pdf
    File Function: First version, 2023
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    References listed on IDEAS

    as
    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. Anita V. Staneva & Hany Abdel-Latif, 2016. "From Soviet to Europe: Returns to Education Puzzle in Bulgaria," LABOUR, CEIS, vol. 30(3), pages 347-367, September.
    3. Svilena MIHAYLOVA & Silviya BRATOEVA-MANOLEVA, 2018. "Structural changes and wage inequality in the Bulgarian economy," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 9, pages 205-227, December.
    4. Galbraith, James K. & Spagnolo, Laura T. & Pinto, Sergio, 2007. "Economic Inequality and Political Power: A Comparative Analysis of Argentina and Brazil," Business and Politics, Cambridge University Press, vol. 9(1), pages 1-23, April.
    5. Hristo Mavrov, 2017. "The Relationship Between Financial Development and Income Inequality: Data from Bulgaria," Izvestia Journal of the Union of Scientists - Varna. Economic Sciences Series, Union of Scientists - Varna, Economic Sciences Section, issue 2, pages 5-12, November.
    6. 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.
    7. Adem Yavuz Elveren, 2010. "Wage Inequality In Turkey: Decomposition By Statistical Regions, 1980–2001," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 22(1), pages 55-72, March.
    8. Petar Peshev & Kristina Stefanova & Ivan Bozhikin & Radostina Stamenova & Ivanina Mancheva, 2022. "Is income inequality in Bulgaria underestimated in survey data?," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 301-326.
    9. Galbraith James K & Spagnolo Laura T & Pinto Sergio, 2007. "Economic Inequality and Political Power: A Comparative Analysis of Argentina and Brazil," Business and Politics, De Gruyter, vol. 9(1), pages 1-25, May.
    10. Jonathan David Ostry & Andrew Berg & Charalambos G Tsangarides, 2014. "Redistribution, Inequality, and Growth," IMF Staff Discussion Notes 14/02, International Monetary Fund.
    11. 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.
    12. Stoyan Tanchev, 2021. "How the proportional income taxation increases inequality in Bulgaria," Journal of Tax Reform, Graduate School of Economics and Management, Ural Federal University, vol. 7(3), pages 244-254.
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    Keywords

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    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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