The structure of incomes and social protection during the transition: The case of Bulgaria

Hassan, Fareed M. A.; Peters, Rebecca

doi:10.1080/09668139608412371

Cited by 9 publications

(7 citation statements)

References 3 publications

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“…The type of analysis and principles enunciated are potentially of wider interest to other EMEs for two reasons. First, the striking similarities in the pattern of income distribution in these economies recently reported by Milanovic (1995) and Hassan and Peters (1996).…”

Section: Introductionmentioning

confidence: 69%

Revenue-productive Income Tax Structures and Tax Reforms in Emerging Market Economies: Evidence from Bulgaria

Hassan¹

1998

Policy Research Working Papers

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Using a household budget survey for 1992, Hassan-the number of rates and brackets increased from 7 to 10, shows the poor revenue performance and distribuLional and the levels of exemption remain unchanged. impact of BuLgaria's personal income tax system. He (Complex, higher rates complicate administration and explores the implications for revenue and income enforcement and provide inicentives for tax evasion. And distribution of two alternative tax systensa flat. tax in the alternative systems Hassan explores, the poor are and a progressive but simpler three-brackets tax system.protected with higher exemnptions.) He demonstrates that simpler tax structures with lower Fortunately, the country's personal income tax tax rates could achieve at least equal revenue and structure began to move toward less nominal distributional objectives and are superior in terms of progressivity after Bulgaria's 1997 tax reform program. efficiency anid equity. (The findings are robust whenThe tax rate in the top income bracket was reduced from Bulgaria's significant tax evasion is included.) 52 percent to 40 percent, the number of tax brackets was But tax changes since 1992 have, if anything, moved halved, and the exemption level was increased 20 Bulgaria even further from a simple income tax system: percent (reducing tax burdens on the poor).This papera product of the Poverty Reduction and Economic Management Sector, Europe and Central Asia Regionis part of a larger effort in the region to analyze the social and revenue dimensions of tax reforms in transition economies.Copies of the paper are available free from the World Bank,

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Section: Introductionmentioning

confidence: 69%

Revenue-productive Income Tax Structures and Tax Reforms in Emerging Market Economies: Evidence from Bulgaria

Hassan¹

1998

Policy Research Working Papers

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“…This distinguishes Bulgaria from developing countries, where households with lower income per person tend to be larger with more children (Lipton and Ravallion, 1993; Van de Walle and Ravallion, 1993). In contrast, poor Bulgarian households (defined as the lowest two income decile) average three members, exactly the same size as all sample households (Hassan and Peters, 1996). Furthermore, they show that middle-to-higher-income households have slightly larger household size (with virtually equal number of children) than do low-income households.…”

Section: Methodsmentioning

confidence: 83%

“…To account for variation in the household size, the analysis here uses the annual household income per capita. Surprisingly, the budget survey results show that Bulgarian household size is not a correlate of poverty (Hassan and Peters, 1996). This distinguishes Bulgaria from developing countries, where households with lower income per person tend to be larger with more children (Lipton and Ravallion, 1993; Van de Walle and Ravallion, 1993).…”

Section: Methodsmentioning

confidence: 99%

“…Including these sources can alter Bulgaria's income distribution due to the concentration of assets (real and financial) among the richest group. However, even including these sources does not significantly affect the overall income distribution picture (Hassan and Peters, 1996). Although inkind income accounts for about 24% of household income and was counted as part of income, only cash income was subject to taxation.…”

Section: Methodsmentioning

confidence: 99%

“…The Gini coefficient is 25.8%. While the Gini index in a typical middleincome country had ranged between 40 and 5470, in Central and Eastern Europe, it oscillated between 20 and 29%-at values even lower than those prevailing in Western market economies (Hassan and Peters, 1996. ) This comparatively low income inequality, although changing rapidly, still is an important characteristic of most economies in transition.…”

Section: Income Levels and Income Distributionmentioning

confidence: 96%

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Effects of Personal Income Tax on Income Distribution: Example From Bulgaria

Hassan¹,

Bogetić²

1996

Contemporary Economic Policy

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This study utilizes the 1992 Bulgarian household budget survey to analyze the distribution of income and income tax burden. Results indicate that the country is characterized by low income inequality, though this is changing rapidly. The findings also show that the present income tax system is progressive and that the urban sector pays much more relative to its income. Despite a steeply graduated statutory tax rate schedule, effective progression is rather modest, indicating significant tax evasion. However, one must view the results of progressivity and urban bias cautiously. As in-kind income becomes monetized and as the economy becomes more market-oriented, both progressivity and urban/rural differences will wane over time. Copyright 1996 Western Economic Association International.

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Work incentives and other effects of the transition to social assistance in the transition economies: Evidence from Bulgaria

Jones

Kotzeva

1998

Empirical Economics

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The structure of incomes and social protection during the transition: The case of Bulgaria

Cited by 9 publications

References 3 publications

Revenue-productive Income Tax Structures and Tax Reforms in Emerging Market Economies: Evidence from Bulgaria

Revenue-productive Income Tax Structures and Tax Reforms in Emerging Market Economies: Evidence from Bulgaria

Effects of Personal Income Tax on Income Distribution: Example From Bulgaria

Work incentives and other effects of the transition to social assistance in the transition economies: Evidence from Bulgaria

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