Publication: From Transition to EU Accession : The Bulgarian Labor Market during the 1990s
Loading...
Date
2001-05
ISSN
Published
2001-05
Author(s)
Editor(s)
Abstract
This report studies the Bulgarian labor market with a view to understand the interactions between the performance of the Bulgarian economy and the functioning of its labor market. The report assesses also the position of Bulgaria vis-a-vis compliance with the "acquis communautaire," and provides a set of key policy recommendations that may enhance job creation potential in years to come. In the aftermath of a steep adjustment process, the Bulgarian labor market resembles a sclerotic market, not dissimilar from the worst performing European markets. Nevertheless, the existing labor market policies and institutions, with the exception of excessively high payroll taxes and a somewhat strict employment protection legislation, are not necessarily synonymous of labor market rigidity: unemployment support schemes are modest, the minimum wage is not high, and industrial relations systems do not appear to prevent an efficient wage dispersion across sectors. Thus, the poor performance of Bulgaria is likely to be the result of a chronic inability to restructure its old sector and to tackle fundamental structural problems. In terms of compliance with the "acquis communautaire," Bulgaria's legislation appears aligned with most of the European Union requirements in the labor area. However, the standardization of working conditions requires substantial investments and a strengthening of administrative capacity to implement EU legislation.
Link to Data Set
Citation
“Garibaldi, Pietro; Makovec, Mattia; Stoyanova, Gabriella. 2001. From Transition to EU Accession : The Bulgarian Labor Market during the 1990s. World Bank Technical Paper;No. 494. © World Bank. http://hdl.handle.net/10986/13946 License: CC BY 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Job Creation in Mozambique : Is Labor Law Reform the Answer?(World Bank, Washington, DC, 2006-11)This paper analyzes the potential economic impact of changes to the labor laws proposed in 2006. The economic logic behind these reforms is reviewed, and the conditions under which the reforms could be expected to have the maximum impact on employment are isolated. Next, the experiences of selected developing countries which have undertaken similar reforms are reviewed, which showed the importance of initial conditions and economic trends outside of the labor market in ensuring a successful reform. Third, the main provisions of the proposed reforms are explained. The analysis concludes that given Mozambique s initial conditions, including strong demand from private sector employers for change, the scope of proposed reforms, and the potential for continued economic growth, the reforms should increase firms' profit margins, and as a result, a positive employment effect is possible in the medium term. The analysis also shows that although the reforms are deep compared with the starting point, even if reforms are enacted, Mozambique's labor market would still be classified as rigid by international benchmarks. The report concludes with a discussion of the possible social and poverty effect. In the short run, there is a danger of layoffs in some of the larger firms which had previously reported being overstaffed. If this happens, the poverty effect would certainly be negative in the short run. The concluding section notes that other countries have avoided these types of layoffs by introducing transition arrangements.Publication Employment Protection Legislation and Labor Market Outcomes : Theory, Evidence and Lessons for Croatia(Washington, DC, 2011-07)In response to prolonged recession, in April 2010 the Croatian Government adopted an Economic Recovery Program to safeguard macroeconomic stability and support faster recovery of the private sector. A central element of the program is revision of labor regulations to create a more dynamic labor market by ensuring labor force flexibility and job security. The goal is to increase the labor force participation rate and ensure that it has the skills and competencies required by the evolving and dynamic private sector. The Croatian Ministries of Finance and labor asked the World Bank for support in design of possible labor legislation reform. The objective of this note is to benchmark Croatia's legislation and help identify legal constraints on achieving a more dynamic and flexible labor market. Changes to employment protection legislation (EPL) can be politically difficult. They therefore need to be preceded by a public information campaign explaining their rationale and by dialogue with social partners. The central message to be conveyed to the public is that relaxing the most rigid provisions of the labor law will eventually lead to better employment prospects, shorter spells of unemployment, less informality, and higher productivity and ultimately incomes. This involves moving from protecting jobs to protecting workers an idea known as flexicurity.Publication Key Characteristics of Employment Regulation in the Middle East and North Africa(World Bank, Washington, DC, 2010-07)This note provides a general background of the main features of labor regulation in the Middle East and North Africa (MENA) and benchmarks them against international best practices. The note compiles information on available labor laws and other legal acts concerning employment protection regulation. Within the broader scope of labor regulation, and in order to assure regional comparability, information collected focuses on key issues in the labor law associated with commencing or terminating employment and during the period of employment (including maternity benefits). The main sources the data are the World Bank doing business 2010 and International Labour Organisation (ILO) databank. This note is a tool to provide policymakers and international organizations with a regional diagnose of how labor regulation affects labor market outcomes in MENA and inform client governments about strategic approaches to employment creation through labor policy and reform. This activity comes as a response to regional priorities in the context of the Arab World Initiative (AWI). One of the six strategic themes of the AWI focuses explicitly on employment creation as a top priority. Part of the World Bank's mandate under the AWI is to inform client governments about strategic approaches to employment creation through labor policy and reform.Publication Striving for Better Jobs : The Challenge of Informality in the Middle East and North Africa(World Bank, Washington, DC, 2014-08-26)Economic growth has been sustained for many years pre-crisis in the region, but this has not resulted in the creation of an adequate number of jobs and has succeeded, at best, in generating low-quality, informal jobs. The report addresses one margin of exclusion: informal employment and the vulnerabilities and lack of opportunities associated with it. The report analyzes the constraints that prevent informal workers from becoming formal and discusses policy options to effectively address these constraints. This report looks at informality through a human development angle and focuses particularly on informal employment. Informality is a complex phenomenon, comprising unpaid workers and workers without social security or health insurance coverage, small or micro-firms that operate outside the regulatory framework and large registered firms that may partially evade corporate taxes and social security contributions. The first section provides a detailed profile of informal workers in the region. The second section describes the characteristics of informality in micro-firms that operate outside the regulatory framework and in larger firms that do not fully comply with social security contribution requirements and tax obligations. The third section presents informality and the firm. The fourth section focuses on informality: choice or exclusion? The fifth section discusses policy options for effectively expanding coverage of health insurance and pension systems and promoting the creation of better quality jobs.Publication Bosnia and Herzegovina : Labor Market Update, The Role of Industrial Relations(Washington, DC, 2005-12)This report identifies recent developments in the labor market in Bosnia and Herzegovina and by focusing on industrial relations, aims to provide new policy insights. The report shows that there have also been some improvements in labor market outcomes over the last few years. Nonetheless, changes in the legal and regulatory framework could contribute further to the performance of the labor market. High wages compared to productivity in the formal sector, the large and growing share of workers in the informal sector who are not covered by social insurance, and persistent unemployment are the three key labor market challenges facing Bosnia and Herzegovina (BH) today. Prospects for growth in Bosnia and Herzegovina are too fragile and not sustainable unless systemic reforms are introduced and effectively implemented. The report is organized as follows. The overview presents a summary of the findings and recommendations of the report, while Chapter 1 assesses the structure of and trends in the labor market. Chapter 2 examines the effects of the different wage determination processes on earnings, and Chapter 3 reviews the regulatory and industrial relations framework. A review of the international experience with collective bargaining is included in Annex V of this report and can serve as the basis for future discussions among local stakeholders about reform directions for collective bargaining.
Users also downloaded
Showing related downloaded files
Publication Classroom Assessment to Support Foundational Literacy(Washington, DC: World Bank, 2025-03-21)This document focuses primarily on how classroom assessment activities can measure students’ literacy skills as they progress along a learning trajectory towards reading fluently and with comprehension by the end of primary school grades. The document addresses considerations regarding the design and implementation of early grade reading classroom assessment, provides examples of assessment activities from a variety of countries and contexts, and discusses the importance of incorporating classroom assessment practices into teacher training and professional development opportunities for teachers. The structure of the document is as follows. The first section presents definitions and addresses basic questions on classroom assessment. Section 2 covers the intersection between assessment and early grade reading by discussing how learning assessment can measure early grade reading skills following the reading learning trajectory. Section 3 compares some of the most common early grade literacy assessment tools with respect to the early grade reading skills and developmental phases. Section 4 of the document addresses teacher training considerations in developing, scoring, and using early grade reading assessment. Additional issues in assessing reading skills in the classroom and using assessment results to improve teaching and learning are reviewed in section 5. Throughout the document, country cases are presented to demonstrate how assessment activities can be implemented in the classroom in different contexts.Publication The Journey Ahead(Washington, DC: World Bank, 2024-10-31)The Journey Ahead: Supporting Successful Migration in Europe and Central Asia provides an in-depth analysis of international migration in Europe and Central Asia (ECA) and the implications for policy making. By identifying challenges and opportunities associated with migration in the region, it aims to inform a more nuanced, evidencebased debate on the costs and benefits of cross-border mobility. Using data-driven insights and new analysis, the report shows that migration has been an engine of prosperity and has helped address some of ECA’s demographic and socioeconomic disparities. Yet, migration’s full economic potential remains untapped. The report identifies multiple barriers keeping migration from achieving its full potential. Crucially, it argues that policies in both origin and destination countries can help maximize the development impacts of migration and effectively manage the economic, social, and political costs. Drawing from a wide range of literature, country experiences, and novel analysis, The Journey Ahead presents actionable policy options to enhance the benefits of migration for destination and origin countries and migrants themselves. Some measures can be taken unilaterally by countries, whereas others require close bilateral or regional coordination. The recommendations are tailored to different types of migration— forced displacement as well as high-skilled and low-skilled economic migration—and from the perspectives of both sending and receiving countries. This report serves as a comprehensive resource for governments, development partners, and other stakeholders throughout Europe and Central Asia, where the richness and diversity of migration experiences provide valuable insights for policy makers in other regions of the world.Publication Lebanon Economic Monitor, Fall 2022(Washington, DC, 2022-11)The economy continues to contract, albeit at a somewhat slower pace. Public finances improved in 2021, but only because spending collapsed faster than revenue generation. Testament to the continued atrophy of Lebanon’s economy, the Lebanese Pound continues to depreciate sharply. The sharp deterioration in the currency continues to drive surging inflation, in triple digits since July 2020, impacting the poor and vulnerable the most. An unprecedented institutional vacuum will likely further delay any agreement on crisis resolution and much needed reforms; this includes prior actions as part of the April 2022 International Monetary Fund (IMF) staff-level agreement (SLA). Divergent views among key stakeholders on how to distribute the financial losses remains the main bottleneck for reaching an agreement on a comprehensive reform agenda. Lebanon needs to urgently adopt a domestic, equitable, and comprehensive solution that is predicated on: (i) addressing upfront the balance sheet impairments, (ii) restoring liquidity, and (iii) adhering to sound global practices of bail-in solutions based on a hierarchy of creditors (starting with banks’ shareholders) that protects small depositors.Publication World Development Report 2006(Washington, DC, 2005)This year’s Word Development Report (WDR), the twenty-eighth, looks at the role of equity in the development process. It defines equity in terms of two basic principles. The first is equal opportunities: that a person’s chances in life should be determined by his or her talents and efforts, rather than by pre-determined circumstances such as race, gender, social or family background. The second principle is the avoidance of extreme deprivation in outcomes, particularly in health, education and consumption levels. This principle thus includes the objective of poverty reduction. The report’s main message is that, in the long run, the pursuit of equity and the pursuit of economic prosperity are complementary. In addition to detailed chapters exploring these and related issues, the Report contains selected data from the World Development Indicators 2005‹an appendix of economic and social data for over 200 countries. This Report offers practical insights for policymakers, executives, scholars, and all those with an interest in economic development.Publication Argentina Country Climate and Development Report(World Bank, Washington, DC, 2022-11)The Argentina Country Climate and Development Report (CCDR) explores opportunities and identifies trade-offs for aligning Argentina’s growth and poverty reduction policies with its commitments on, and its ability to withstand, climate change. It assesses how the country can: reduce its vulnerability to climate shocks through targeted public and private investments and adequation of social protection. The report also shows how Argentina can seize the benefits of a global decarbonization path to sustain a more robust economic growth through further development of Argentina’s potential for renewable energy, energy efficiency actions, the lithium value chain, as well as climate-smart agriculture (and land use) options. Given Argentina’s context, this CCDR focuses on win-win policies and investments, which have large co-benefits or can contribute to raising the country’s growth while helping to adapt the economy, also considering how human capital actions can accompany a just transition.