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Transition to market economics: Employment and informal activity in rural areas

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  • Mieke Meurs
  • Stanka Dobreva
  • Veska Kouzhouharova

Abstract

According to the neo-liberal model, the high levels of unemployment and collapsing real wages of transition will reallocate labor to new activities. But whether and how households actually reallocate labor is the subject of growing debate. We use survey data from Bulgaria to develop a typology of rural households based on their labor allocation characteristics. We find a diversity of outcomes. A significant share of households experience no change in labor allocation, some shift labor to own commercial enterprises, but a significant minority are displaced from the emerging market economy. Potential for informal activity among these households appears limited. Of great concern is the regional concentration of such households.
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Suggested Citation

  • Mieke Meurs & Stanka Dobreva & Veska Kouzhouharova, 2002. "Transition to market economics: Employment and informal activity in rural areas," Forum for Social Economics, Springer;The Association for Social Economics, vol. 32(1), pages 33-42, September.
  • Handle: RePEc:spr:fosoec:v:32:y:2002:i:1:p:33-42 DOI: 10.1007/BF02747264
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    1. A. Š•slund, 2001. "The Myth of Output Collapse After Communism," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 7.
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