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Work incentives and other effects of the transition to social assistance in the transition economies: Evidence from Bulgaria

Author

Listed:
  • Mariana M. Kotzeva

    (University of National and World Economy, Dept. Statistics and Econometrics, BG-Sofia, Bulgaria)

  • Derek C. Jones

    (Economic Department, Hamilton College, 198 College Hill Road, Clinton, New York 13323, U.S.A.)

Abstract

The compensation levels, duration structure and means-tested aspects of the income support system for the unemployed in Bulgaria are considered. The available evidence points to the emergence of long term unemployment as a major problem, to a system of social assistance (SA) which is not overly generous and to growing poverty. Nevertheless, econometric analysis using micro data indicates that disincentives for job search exist for SA recipients. In the context of an acute fiscal crisis, systemic efficiency might be improved by restricting access to some benefits, by some changes in scaling, in moves towards targeted contributions and in improvements in administrative capacity.

Suggested Citation

  • Mariana M. Kotzeva & Derek C. Jones, 1998. "Work incentives and other effects of the transition to social assistance in the transition economies: Evidence from Bulgaria," Empirical Economics, Springer, vol. 23(1/2), pages 237-261.
  • Handle: RePEc:spr:empeco:v:23:y:1998:i:1/2:p:237-261
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    Citations

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    Cited by:

    1. Milan Vodopivec, 2004. "Income Support for the Unemployed : Issues and Options," World Bank Publications - Books, The World Bank Group, number 14922.
    2. Adriana D. Kugler, 2019. "Impacts of Labor Market Institutions and Demographic Factors on Labor Markets in Latin America," IMF Working Papers 2019/155, International Monetary Fund.
    3. Vodopivec, Milan & Raju, Dhushyanth, 2002. "Income support systems for the unemployed : issues and options," Social Protection Discussion Papers and Notes 25529, The World Bank.

    More about this item

    Keywords

    Welfare · poverty · Bulgaria · work incentives;

    JEL classification:

    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • P00 - Political Economy and Comparative Economic Systems - - General - - - General

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