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Negotiation of Social Security Floors: Problems and Possible Solutions

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  • Stefan Petranov

Abstract

This paper examines the process of negotiating social security floors (SSF) in Bulgaria and analyzes its problems. The focus is placed on finding the adequate balance between the role of SSF to accumulate sufficient means in the social funds and the impact of these floors on employment. Five different systems of SSF are presented aimed at offering specific rules for their change over time. These rules ensure the lack of motivation for informal practices and for reduction of employment, and at the same time meet the need for adequate revenues for the social funds. All five systems are based on sound economic arguments, they are practically oriented and are easy to use. They may be used separately or together – in combination.

Suggested Citation

  • Stefan Petranov, 2017. "Negotiation of Social Security Floors: Problems and Possible Solutions," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 5, pages 3-29.
    • Handle: RePEc:bas:econst:y:2017:i:5:p:3-29
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    References listed on IDEAS

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    5. Stefan Petranov & Maria St. Ivanova, 2017. "Social Security Floors and Informal Employment: the Case of Bulgaria," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 21-40.
    6. Kamila Fialová, 2010. "Labor Institutions and their Impact on Shadow Economies in Europe," Working Papers IES 2010/29, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Dec 2010.
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    More about this item

    JEL classification:

    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J46 - Labor and Demographic Economics - - Particular Labor Markets - - - Informal Labor Market
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General

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