The empirical analysis of Bulgaria's income distribution and income tax burden indicates that the country has low income inequality although this is changing rapidly. The income tax is progressive and contributes significantly to reducing income inequality, and the urban sector pays...

Bulgaria's social safety net is not well targeted; too many benefits accrue to better-off households rather than to the poor. Comprehensive reform is needed, focusing on pensions, unemployment benefits, child allowances, and social assistance.Using data from the 1992 Bulgarian household budget...