The Inequality in Household Incomes and its Connection with the Sector Structure of Salaries

V. MITZOV

Abstract: Bulgaria joined the European Union (EU) in 2007. In spite of this during the last 10 years there are not considerable changes of employment by branches of the economy. In the same time 79% of the support of Bulgarian households comes from salaries and social aid. There are several ways of determining the poverty threshold most famous of which are the Gini coefficient and the coefficient of Orshansky. In determining the simple reproduction of agricultural labor force, the Bulgarian scientist Anastasova invented a similar to Orshansky’s coefficient.. Referring to Bulgarian agriculture, it employs 23% of the occupied while their incomes from agricultural labor are near to the poverty threshold. It is true that a part of the rural population works in other industries but among the rural dwellers there is the highest rate of unemployment. One of the unhappy facts is that during the last twenty years refers Bulgaria has no middle class while agriculture is underestimated and gives 6% of Bulgaria’s GDP. This also shows a low efficiency of the support delegated to agriculture both by the Bulgarian Government and those received from the EU. The increase of the number of employed as well as of the salaries shows that in 2008 similarly to some other EU countries the World economic crisis was not felt in Bulgaria.

Keywords: agriculture; incomes; sector; structure

Date published: 2024-09-05