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The Labour Market in Bulgaria

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Author Info

  • I Beleva
  • Richard Jackman
  • M Nenova-Amar

Abstract

The fall in output and employment, and the rise in unemployment, during the transition in Bulgaria have been exceptionally severe. This paper examines possible causes, including the role of the financial stabilisation package, collective bargaining and the excess wage tax, the gradual emergence of the private sector, and the unemployment benefit system. The paper concludes that economic activity in Bulgaria has been depressed relative to other transitional economies by weak export growth as a result of its unfortunate geographical location. On the supply side, there has been a continuing vulnerability to wage inflation resulting from the slow privatisation of state enterprises and the continuing political; strength of the trade unions. A small-scale private sector (some of it "informal") is flourishing, aided in part by the very restrictive unemployment benefit regime, but remains of secondary importance. A sustained recovery will depend both on a return to economic stability in neighbouring economies and on more determined domestic policies, in particular on privatisation, to complete the transition to a market economy.

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Bibliographic Info

Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0268.

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Date of creation: Oct 1995
Date of revision:
Handle: RePEc:cep:cepdps:dp0268

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Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP

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Citations

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Cited by:
  1. Vassil Tzanov, 2007. "Estimates of Labour Market Flexibility in Bulgaria," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 7, pages 27-46.
  2. Vassil Tzanov, 2007. "Assessments of the Flexibility of the Labour Market in Bulgaria," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 3-23.
  3. Dimova, Ralitza & Gang, Ira N., 2004. "Self-Selection and Earnings During Volatile Transition," IZA Discussion Papers 1158, Institute for the Study of Labor (IZA).
  4. Boeri, Tito, 1997. "Heterogeneous workers, economic transformation and the stagnancy of transitional unemployment," European Economic Review, Elsevier, vol. 41(3-5), pages 905-914, April.
  5. Falaris, Evangelos M., 2004. "Private and public sector wages in Bulgaria," Journal of Comparative Economics, Elsevier, vol. 32(1), pages 56-72, March.
  6. Iskra Beleva, 2011. "Cyclic Economic Development and the Labor Market in Bulgaria 1990-2010 (cause-effect relations, realities and challenges)," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 3-56.
  7. Todor Todorov, 2012. "Hidden Unemployment in Bulgaria – Discouraged Worker Effect and Involuntary Underemployment," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 1, pages 171-199.
  8. Richard Jackman & C Pauna, 1997. "Labour Market Policy and the Reallocation of Labour Across Sectors," CEP Discussion Papers dp0338, Centre for Economic Performance, LSE.
  9. V. Tsanov & P. Ivanova & S. Panteleeva & S. Bogdanov, 2013. "GINI Country Report: Growing Inequalities and their Impacts in Bulgaria," GINI Country Reports bulgaria, AIAS, Amsterdam Institute for Advanced Labour Studies.
  10. Richard Jackman & C Pauna, 1997. "Labour market policy and the reallocation of labour across sectors," LSE Research Online Documents on Economics 2047, London School of Economics and Political Science, LSE Library.

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