Wage Inequality in Bulgaria: Decomposition by Economic Sectors, Occupational Groups and Districts
Wage Inequality in Bulgaria: Decomposition by Economic Sectors, Occupational Groups and Districts

Summary/Abstract: Given the pronounced income disparities in the Bulgarian economy, the paper explores wage inequality across economic sectors, occupational groups and districts in the country between 2008 and 2021. Using the between-group component of the Theil's T Statistic, the analysis reveals an overall upward trend in the evolution of wage inequality across sectors, occupational groups and districts. The largest positive contributor to inter-sectoral wage inequality is the highest paid information and communication sector. In terms of the wage disparities between occupational categories, the group of the managers has the largest weight. Finally, at a district level, the capital is the greatest positive contributor to between district wage inequality, due to offering the highest average wage, accounting for around one third of the employment in the country and boasting a concentration of the highest-paid economic activities.

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