Rising Inequality in the Period of Transition and Restrictive Incomes Policy
Though there have been ups and downs, generally speaking income inequality in Bulgaria has increased over the past three decades. The most important determinants of this evolution have been economic development, economic and political reforms (implemented in the first half of the 1990s), and incomes policy. Ethnic differences in education are strongly associated with inequality. In terms of social impacts, the study reveals different relationship patterns. In some cases inequality impacts indirectly on their dynamics; in other cases there is a direct connection. The political impact of inequality has not been high: low voter turnout and lack of trust in public institutions are not correlated with inequality, though the development of inequality and alternating of left-wing and right-wing governments may be related. Incomes policy and social transfers have mixed impacts on inequality.
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