Why is Unemployment so High in Bulgaria?
The author seeks to determine the main factors behind poor labor market outcomes in Bulgaria. Unemployment in Bulgaria is high and of long duration. The accumulation of the unemployment stock has been caused by relatively high inflows into unemploy...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2003/04/2253216/unemployment-so-high-bulgaria http://hdl.handle.net/10986/18258 |
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okr-10986-182582021-04-23T14:03:42Z Why is Unemployment so High in Bulgaria? Rutkowski, Jan UNEMPLOYMENT LEVELS LABOR MARKET CHARACTERISTICS INPUT OUTPUT ANALYSIS TRANSITION ECONOMIES JOB CREATION LABOR DEMAND LABOR MOBILITY SURVEY DATA ENTERPRISE RESTRUCTURING BUSINESS ENVIRONMENT SMALL & MEDIUM SCALE ENTERPRISES SKILL ANALYSIS SKILL SHORTAGES MARGINALIZATION SKILLS INVENTORIES BUREAUCRACY & CORRUPT PRACTICES EMPLOYMENT GENERATION EDUCATIONAL ASSESSMENT AGED AGGREGATE DEMAND AUDITS AVERAGE PRODUCTIVITY CATEGORIES OF WORKERS CENTRAL BANKING CENTRAL PLANNING CLIMATE COMMERCIAL BANKS DECISION MAKING DISMISSAL ECONOMIC ACTIVITY ECONOMIC GROWTH EMPLOYMENT GROWTH EMPLOYMENT OPPORTUNITIES EXCHANGE RATE FAMILIES FEMALE EMPLOYMENT FEMALE LABOR FEMALE LABOR FORCE FINANCIAL STABILITY FISCAL POLICY FOREIGN LABOR HIGH EMPLOYMENT HIGH UNEMPLOYMENT HUMAN DEVELOPMENT IMPORTS INFLATION INSURANCE INTEREST RATES JOB CREATION LABOR DEMAND LABOR FORCE LABOR FORCE PARTICIPATION LABOR MARKET LABOR MARKET POLICIES LABOR MARKETS LABOR MOBILITY LABOR PRODUCTIVITY LABOR TURNOVER LARGE PUBLIC ENTERPRISES LEGISLATION LOCAL AUTHORITIES LONG TERM UNEMPLOYMENT MACROECONOMIC CONDITIONS MACROECONOMIC STABILIZATION NOMINAL INTEREST RATES OCCUPATIONS OLDER WORKERS PENSIONS PRIVATE SECTOR PRIVATIZATION PRODUCTIVITY PRODUCTIVITY GROWTH PRODUCTIVITY IMPROVEMENT PUBLIC SECTOR REAL WAGES RURAL LABOR SOCIAL EXCLUSION TAXATION TERTIARY EDUCATION TRANSITION ECONOMIES UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT = DURATION UNEMPLOYMENT RATE WHITE COLLAR WORKERS WORKING POOR EDUCATIONAL ASSESSMENT AGED The author seeks to determine the main factors behind poor labor market outcomes in Bulgaria. Unemployment in Bulgaria is high and of long duration. The accumulation of the unemployment stock has been caused by relatively high inflows into unemployment coupled with limited outflows. These features of the Bulgarian labor market are typical of other transition economies in Central Europe and exploring their sources is of broad interest. The author focuses on determinants of and constraints to job creation. He uses data on job creation and job destruction from a survey of employment in all registered firms. He finds that the source of large inflows into unemployment is intensive enterprise restructuring associated with a high pace of job reallocation. However, job creation falls short of job destruction. Three main factors account for the limited job creation and hiring, and thus for low outflows from unemployment: a) The unfriendly business environment, reflected by a low rate of new firm formation, and a relatively small, small and medium enterprise sector. b) Labor market rigidities, including excessive hiring and firing costs. c) Skill and spatial mismatches brought about by enterprise restructuring, as well as low skills and marginalization of the long-term unemployed who cannot successfully compete for new jobs. The author recommends a three pronged strategy to improve labor market performance: (1) removing bureaucratic constraints to entry and expansion of firms; (2) enhancing labor market flexibility through lowering hiring and firing costs; and (3) improving the educational system so as to equip workers with broad and portable skills. 2014-05-12T18:27:18Z 2014-05-12T18:27:18Z 2003-04 http://documents.worldbank.org/curated/en/2003/04/2253216/unemployment-so-high-bulgaria http://hdl.handle.net/10986/18258 English en_US Policy Research Working Paper;No. 3017 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Europe and Central Asia Bulgaria |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
UNEMPLOYMENT LEVELS LABOR MARKET CHARACTERISTICS INPUT OUTPUT ANALYSIS TRANSITION ECONOMIES JOB CREATION LABOR DEMAND LABOR MOBILITY SURVEY DATA ENTERPRISE RESTRUCTURING BUSINESS ENVIRONMENT SMALL & MEDIUM SCALE ENTERPRISES SKILL ANALYSIS SKILL SHORTAGES MARGINALIZATION SKILLS INVENTORIES BUREAUCRACY & CORRUPT PRACTICES EMPLOYMENT GENERATION EDUCATIONAL ASSESSMENT AGED AGGREGATE DEMAND AUDITS AVERAGE PRODUCTIVITY CATEGORIES OF WORKERS CENTRAL BANKING CENTRAL PLANNING CLIMATE COMMERCIAL BANKS DECISION MAKING DISMISSAL ECONOMIC ACTIVITY ECONOMIC GROWTH EMPLOYMENT GROWTH EMPLOYMENT OPPORTUNITIES EXCHANGE RATE FAMILIES FEMALE EMPLOYMENT FEMALE LABOR FEMALE LABOR FORCE FINANCIAL STABILITY FISCAL POLICY FOREIGN LABOR HIGH EMPLOYMENT HIGH UNEMPLOYMENT HUMAN DEVELOPMENT IMPORTS INFLATION INSURANCE INTEREST RATES JOB CREATION LABOR DEMAND LABOR FORCE LABOR FORCE PARTICIPATION LABOR MARKET LABOR MARKET POLICIES LABOR MARKETS LABOR MOBILITY LABOR PRODUCTIVITY LABOR TURNOVER LARGE PUBLIC ENTERPRISES LEGISLATION LOCAL AUTHORITIES LONG TERM UNEMPLOYMENT MACROECONOMIC CONDITIONS MACROECONOMIC STABILIZATION NOMINAL INTEREST RATES OCCUPATIONS OLDER WORKERS PENSIONS PRIVATE SECTOR PRIVATIZATION PRODUCTIVITY PRODUCTIVITY GROWTH PRODUCTIVITY IMPROVEMENT PUBLIC SECTOR REAL WAGES RURAL LABOR SOCIAL EXCLUSION TAXATION TERTIARY EDUCATION TRANSITION ECONOMIES UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT = DURATION UNEMPLOYMENT RATE WHITE COLLAR WORKERS WORKING POOR EDUCATIONAL ASSESSMENT AGED |
| spellingShingle |
UNEMPLOYMENT LEVELS LABOR MARKET CHARACTERISTICS INPUT OUTPUT ANALYSIS TRANSITION ECONOMIES JOB CREATION LABOR DEMAND LABOR MOBILITY SURVEY DATA ENTERPRISE RESTRUCTURING BUSINESS ENVIRONMENT SMALL & MEDIUM SCALE ENTERPRISES SKILL ANALYSIS SKILL SHORTAGES MARGINALIZATION SKILLS INVENTORIES BUREAUCRACY & CORRUPT PRACTICES EMPLOYMENT GENERATION EDUCATIONAL ASSESSMENT AGED AGGREGATE DEMAND AUDITS AVERAGE PRODUCTIVITY CATEGORIES OF WORKERS CENTRAL BANKING CENTRAL PLANNING CLIMATE COMMERCIAL BANKS DECISION MAKING DISMISSAL ECONOMIC ACTIVITY ECONOMIC GROWTH EMPLOYMENT GROWTH EMPLOYMENT OPPORTUNITIES EXCHANGE RATE FAMILIES FEMALE EMPLOYMENT FEMALE LABOR FEMALE LABOR FORCE FINANCIAL STABILITY FISCAL POLICY FOREIGN LABOR HIGH EMPLOYMENT HIGH UNEMPLOYMENT HUMAN DEVELOPMENT IMPORTS INFLATION INSURANCE INTEREST RATES JOB CREATION LABOR DEMAND LABOR FORCE LABOR FORCE PARTICIPATION LABOR MARKET LABOR MARKET POLICIES LABOR MARKETS LABOR MOBILITY LABOR PRODUCTIVITY LABOR TURNOVER LARGE PUBLIC ENTERPRISES LEGISLATION LOCAL AUTHORITIES LONG TERM UNEMPLOYMENT MACROECONOMIC CONDITIONS MACROECONOMIC STABILIZATION NOMINAL INTEREST RATES OCCUPATIONS OLDER WORKERS PENSIONS PRIVATE SECTOR PRIVATIZATION PRODUCTIVITY PRODUCTIVITY GROWTH PRODUCTIVITY IMPROVEMENT PUBLIC SECTOR REAL WAGES RURAL LABOR SOCIAL EXCLUSION TAXATION TERTIARY EDUCATION TRANSITION ECONOMIES UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT = DURATION UNEMPLOYMENT RATE WHITE COLLAR WORKERS WORKING POOR EDUCATIONAL ASSESSMENT AGED Rutkowski, Jan Why is Unemployment so High in Bulgaria? |
| geographic_facet |
Europe and Central Asia Bulgaria |
| relation |
Policy Research Working Paper;No. 3017 |
| description |
The author seeks to determine the main
factors behind poor labor market outcomes in Bulgaria.
Unemployment in Bulgaria is high and of long duration. The
accumulation of the unemployment stock has been caused by
relatively high inflows into unemployment coupled with
limited outflows. These features of the Bulgarian labor
market are typical of other transition economies in Central
Europe and exploring their sources is of broad interest. The
author focuses on determinants of and constraints to job
creation. He uses data on job creation and job destruction
from a survey of employment in all registered firms. He
finds that the source of large inflows into unemployment is
intensive enterprise restructuring associated with a high
pace of job reallocation. However, job creation falls short
of job destruction. Three main factors account for the
limited job creation and hiring, and thus for low outflows
from unemployment: a) The unfriendly business environment,
reflected by a low rate of new firm formation, and a
relatively small, small and medium enterprise sector. b)
Labor market rigidities, including excessive hiring and
firing costs. c) Skill and spatial mismatches brought about
by enterprise restructuring, as well as low skills and
marginalization of the long-term unemployed who cannot
successfully compete for new jobs. The author recommends a
three pronged strategy to improve labor market performance:
(1) removing bureaucratic constraints to entry and expansion
of firms; (2) enhancing labor market flexibility through
lowering hiring and firing costs; and (3) improving the
educational system so as to equip workers with broad and
portable skills. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Rutkowski, Jan |
| author_facet |
Rutkowski, Jan |
| author_sort |
Rutkowski, Jan |
| title |
Why is Unemployment so High in Bulgaria? |
| title_short |
Why is Unemployment so High in Bulgaria? |
| title_full |
Why is Unemployment so High in Bulgaria? |
| title_fullStr |
Why is Unemployment so High in Bulgaria? |
| title_full_unstemmed |
Why is Unemployment so High in Bulgaria? |
| title_sort |
why is unemployment so high in bulgaria? |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2003/04/2253216/unemployment-so-high-bulgaria http://hdl.handle.net/10986/18258 |
| _version_ |
1764439491801513984 |