Publication:
Reassessing Welfare Impacts of Bulgarian Fiscal Policy through a Child Poverty Perspective

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dc.contributor.authorRobayo, Monica
dc.contributor.authorCabrera, Maynor
dc.date.accessioned2024-01-16T16:55:35Z
dc.date.available2024-01-16T16:55:35Z
dc.date.issued2024-01-16
dc.description.abstractThis paper delves into Bulgaria's persistent issue of child poverty, even amidst policy efforts at the European Union (EU) and national levels. The study updates a comprehensive fiscal incidence analysis using the Commitment to Equity (CEQ) model, considering COVID-19's impact and a child-focused perspective, and simulates child-related policy interventions' effectiveness in alleviating child poverty. Our results show that Bulgaria's fiscal system has a limited impact on the overall at-risk of poverty rate, though it shows potential in reducing poverty for lower income deciles. Bulgaria's fiscal system reduces inequality compared to other countries with similar income levels, primarily driven by the substantial influence of direct transfers, education, and health allocations. Nevertheless, the redistributive effect of direct taxes and transfers remains comparatively modest within Europe. The study emphasizes the progressive nature of Bulgaria's fiscal components, benefiting the poorest through social benefits. When applying a child lens, our results show that fiscal policy is not very effective in addressing child poverty, as it reduces it by just 0.3 percentage points. However, means-tested programs targeting families and children play a significant role in mitigating child poverty. This research also underscores that specific households in Bulgaria face heightened vulnerability and may not receive optimal support from fiscal measures, including households with three or more children and lone-parent households, especially those headed by lone females. Microsimulation results suggest that enhancing child tax deductions among low-income earners and refining the design of child benefits to improve targeting effectiveness and generosity can notably contribute to child poverty reduction. The paper offers insights into more equitable policy design in Bulgaria's pursuit of combating child poverty.en
dc.identifierhttp://documents.worldbank.org/curated/en/099322301092438309/IDU188f80cfb173ec1413c19a5b1f768dd633328
dc.identifier.doi10.1596/1813-9450-10657
dc.identifier.urihttps://openknowledge.worldbank.org/handle/10986/40891
dc.languageEnglish
dc.language.isoen
dc.publisherWashington, DC: World Bank
dc.relation.ispartofseriesPolicy Research Working Paper; 10657
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by/3.0/igo/
dc.subjectCHILD POVERTY
dc.subjectFISCAL POLICY
dc.subjectFISCAL INCIDENCE
dc.subjectSOCIAL SPENDING
dc.subjectTAXATION
dc.subjectCOMMITMENT TO EQUITY (CEQ) MODEL
dc.subjectCOVID-19 PANDEMIC IMPACT ON CHILD POVERTY
dc.titleReassessing Welfare Impacts of Bulgarian Fiscal Policy through a Child Poverty Perspectiveen
dc.typeWorking Paper
dspace.entity.typePublication
okr.associatedcontenthttps://reproducibility.worldbank.org/index.php/catalog/104 Link to data and reproducibility package
okr.crossref.titleReassessing Welfare Impacts of Bulgarian Fiscal Policy through a Child Poverty Perspective
okr.date.disclosure2024-01-09
okr.date.lastmodified2024-01-09T00:00:00Zen
okr.doctypePolicy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099322301092438309/IDU188f80cfb173ec1413c19a5b1f768dd633328
okr.guid099322301092438309
okr.identifier.docmidIDU-88f80cfb-73ec-413c-9a5b-f768dd633328
okr.identifier.doi10.1596/1813-9450-10657
okr.identifier.doihttp://dx.doi.org/10.1596/1813-9450-10657
okr.identifier.externaldocumentum34234558
okr.identifier.internaldocumentum34234558
okr.identifier.reportWPS10657
okr.import.id2870
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099322301092438309/pdf/IDU188f80cfb173ec1413c19a5b1f768dd633328.pdfen
okr.region.administrativeEurope and Central Asia
okr.region.countryBulgaria
okr.sectorCentral Government (Central Agencies)
okr.themeSocial Development :: Children and Youth
okr.topicPoverty Reduction::Living Standards
okr.topicMacroeconomics and Economic Growth::Fiscal & Monetary Policy
okr.topicSocial Development::Children and Youth
okr.unitEFI-ECA-MTI-MacroFiscal-2 (EECM2)
okr.unitEFI-ECA-POV-Poverty and Equity (EECPV)
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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