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Social Security Floors and Informal Employment: the Case of Bulgaria

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  • Stefan Petranov
  • Maria St. Ivanova

Abstract

The article presents the results of an econometric study on the impact of social security floors on the informal employment in Bulgaria for the period 2003-2012. The social security floors (SSF) are an economic policy tool that has common features with the minimum wage, but it is different from the later. We analyse seven different indicators of informal employment and assess the impact on them of both SSF and a number of other macroeconomic and mesoeconomic variables. We conclude that the rise of SSF, ceteris paribus, leads to an increase in informal employment.

Suggested Citation

  • Stefan Petranov & Maria St. Ivanova, 2017. "Social Security Floors and Informal Employment: the Case of Bulgaria," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 21-40.
    • Handle: RePEc:bas:econst:y:2017:i:3:p:21-40
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    References listed on IDEAS

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    1. Kamila Fialová & Ondrej Schneider, 2014. "Labor Market Institutions and Their Impact on Shadow Economies in Europe," Review of Economics and Institutions, Università di Perugia, vol. 5(1).
    2. Margherita Comola & Luiz de Mello, 2009. "How Does Decentralised Minimum-Wage Setting Affect Unemployment and Informality?: The Case of Indonesia," OECD Economics Department Working Papers 710, OECD Publishing.
    3. Kamila Fialová, 2010. "Labor Institutions and their Impact on Shadow Economies in Europe," Working Papers IES 2010/29, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Dec 2010.
    4. Askenazy, Philippe, 2003. "Minimum wage, exports and growth," European Economic Review, Elsevier, vol. 47(1), pages 147-164, February.
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    Cited by:

    1. Stefan Petranov, 2017. "Negotiation of Social Security Floors: Problems and Possible Solutions," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 5, pages 3-29.

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    More about this item

    JEL classification:

    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J46 - Labor and Demographic Economics - - Particular Labor Markets - - - Informal Labor Market

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