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Off-farm labor supply and labor markets in rapidly changing circumstances: Bulgaria during transition

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  • Bhaumik, Sumon Kumar
  • Dimova, Ralitza
  • Nugent, Jeffrey B.

Abstract

This study examines off-farm labor supply in the rapidly changing conditions of Bulgaria during the 1990s. In doing so, we make use of three different waves of the Bulgarian Integrated Household Survey, each reflecting remarkably different environmental conditions. The results suggest that standard theories of off-farm labor supply provide little guidance in situations characterized by chronic excess supply in the off-farm labor market and/or rapidly changing circumstances. In particular, the results show (1) that off-farm employment throughout the transition was predominantly determined by demand rather than by supply, and (2) that the magnitude and statistical significance of the various determinants are very sensitive to changing environmental conditions. As such, the results can be extremely relevant for both theory and policy for the many countries which may still need to go through privatization and painful restructuring as a result of financial crises and globalization.

Suggested Citation

  • Bhaumik, Sumon Kumar & Dimova, Ralitza & Nugent, Jeffrey B., 2011. "Off-farm labor supply and labor markets in rapidly changing circumstances: Bulgaria during transition," Economic Systems, Elsevier, vol. 35(3), pages 378-389, September.
  • Handle: RePEc:eee:ecosys:v:35:y:2011:i:3:p:378-389
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    Cited by:

    1. Tanui, Joseph & Groeneveld, Rolf & Klomp, Jeroen & Mowo, Jeremiahs & Ierland, Ekko C. van, 2013. "Explaining investments in sustainable land management: The role of various income sources in the smallholder farming systems of western Kenya," 2013 Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 161275, African Association of Agricultural Economists (AAAE).
    2. Nagler, Paula & Naudé, Wim, 2014. "Young Entrepreneurs in Rural Africa: Prevalence, Determinants, Productivity," IZA Discussion Papers 8564, Institute for the Study of Labor (IZA).
    3. Nagler, Paula & Naudé, Wim, 2014. "Non-Farm Entrepreneurship in Rural Africa: Patterns and Determinants," IZA Discussion Papers 8008, Institute for the Study of Labor (IZA).
    4. Nagler, Paula & Naude, Wim, 2014. "Non-farm enterprises in rural Africa : new empirical evidence," Policy Research Working Paper Series 7066, The World Bank.

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