INEQUALITY, POVERTY, AND SOCIAL EXCLUSION IN BULGARIA

Abstract

The article examines the evolution of inequalities, poverty, and social exclusion in Bulgaria. The analysis of income inequality is focused not only on the general dynamics but also on the different parts of the income distribution (mainly the two ends of the distribution). Different concepts of income are considered: primary (market) income, income before and after social transfers, and net income. This makes it possible to assess the role of social transfers and taxes on inequality. All other conditions being equal, the levels of the considered inequalities predetermine the positive or negative development of the economy in the country as a whole. Maintaining the balance between rich and poor and achieving the optimal limits of inequality in real life is the key point to the prosperity of any society. The results of the analysis can be used as a basis for the further study of their influence on social, political, and cultural processes in society.