ABSTRACT
This chapter looks at trends in income inequality and poverty in Bulgaria during its turbulent period of transition. It focuses on the analysis of the changes in the structure of household income, the changes in the socioeconomic structure of households and changes in income inequality and the risk of poverty. The main data sources for this analysis are the household budget surveys (HBS) conducted regularly by the National Statistical Institute (NSI), later referred to as "NSI HBS database". The Bulgarian pension system was reformed, and a three-pillar system introduced in 1999-2000. The bulk of pensions are still being paid out of the general government budget where they account for the most significant part of social expenditures. Throughout the 1992-2002 period, wages and salaries, income from agriculture and pensions were the most important income source. The chapter provides data on the percentage of households receiving different types of social benefits.
