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Wage Controls: the Bulgarian Experience in 1991/1992

Listed author(s):
  • Mariella Nenova-Amar

    (Agency for Economic Analysis and Forecasting)

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    The income policy with its key element, the wage regulation, is among the most important instruments in the stabilization programmes of most Eastern European countries. The sustaining of a relatively low inflation level and of profit as a revenue source in state enterprises are the two basic criteria for assessing the income policy efficiency. The overall assessment of wage regulation in Bulgaria in 1991-1992 indicates that the decapitalization of enterprise and the demand-pull inflation are obvious. The analysis indicates also that the instruments on the wage bill growth in state enterprises are efficient, while the instruments for indirect control cannot fulfill their function. However, as long as the state enterprises dominate in the economy, the balance of direct and indirect means of control over the value-added distribution presupposes a careful choice of instruments.

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    Paper provided by Agency for Economic Analysis and Forecasting in its series Working paper series with number 21993en.

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    Length: 14 pages
    Date of creation: Apr 1993
    Handle: RePEc:eaf:wpaper:21993en
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