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Hidden Unemployment in Bulgaria – Discouraged Worker Effect and Involuntary Underemployment

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  • Todor Todorov

Abstract

The present study deals with certain problems, related to the estimation of the hidden unemployment in Bulgaria. The designed for this purpose methodological approach includes investigation of the discouraged worker effect and involuntary unemployment dynamics in the country for the period 2006-2010. By making a comparative analysis of the structure of unemployed, discouraged workers and the remaining part of the inactive persons based on sex, age, level of education, existence of previous employment experience and reasons for leaving their last job, conclusions are made on the employability of certain groups within the general aggregate of the discouraged persons. The results obtained are used for calculating alternative rates of unemployment compared to the officially announced unemployment figures for the investigated period. The estimated expanded unemployment rates take into account the discouraged workers, who possess economic characteristics similar to those of the unemployed, on one hand, and the weighed amount of the involuntary underemployed, measured against the average duration of the actual working time for all employed – on the other.

Suggested Citation

  • 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.
    • Handle: RePEc:bas:econst:y:2012:i:1:p:171-199
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    References listed on IDEAS

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    1. Stigler, George J., 2011. "Economics of Information," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 5, pages 35-49.
    2. Maarten van Ham & Clara H. Mulder & Pieter Hooimeijer, 2001. "Local Underemployment and the Discouraged Worker Effect," Urban Studies, Urban Studies Journal Limited, vol. 38(10), pages 1733-1751, September.
    3. Yolanda Kodrzycki, 2000. "Discouraged and other marginally attached workers: evidence on their role in the labor market," New England Economic Review, Federal Reserve Bank of Boston, issue May, pages 35-40.
    4. Daniel Suryadarma & Asep Suryahadi & Sudarno Sumarto, "undated". "The Measurement and Trends of Unemployment in Indonesia: The Issue of Discouraged Workers," Working Papers 361, Publications Department.
    5. I Beleva & Richard Jackman & M Nenova-Amar, 1995. "The Labour Market in Bulgaria," CEP Discussion Papers dp0268, Centre for Economic Performance, LSE.
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    Cited by:

    1. Predrag Trpeski & Verica Janeska & Marijana Cvetanoska & Aleksandra Lozanoska, 2017. "Unemployment and a Stock – Flow Model on the Labour Market in the Republic of Macedonia," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 41-63.

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    More about this item

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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