THE LABOUR MARKET AND POVERTY IN BULGARIA - AGAIN CRITICIZED BY THE EUROPEAN COMMISSION
Lyuben Tomev
Abstract: The analysis is a critical commentary on the findings of the European Commission (EC) related to sections of the labor market, poverty and social exclusion from the Report on Bulgaria for 2016, including a thorough review regarding the prevention and correction of macroeconomic imbalances.
The analysis is focused on: the huge demographic pressure as a fundamental challenge to the labor market; the argument of the European Commission for ‘threatening the competitiveness rapid growth in real wages’; the issue with the lack of clear criteria and mechanism for determining the minimum wage and ‘its compressing effect’ on wages from the upper ranges; further deterioration in the indicators for income inequality and the low efficiency of the social assistance system. The regressive trend of the overall tax and social security burden in the income range above the maximum insurable earnings is shown as an additional aggravating factor in this direction.
The analysis is focused on: the huge demographic pressure as a fundamental challenge to the labor market; the argument of the European Commission for ‘threatening the competitiveness rapid growth in real wages’; the issue with the lack of clear criteria and mechanism for determining the minimum wage and ‘its compressing effect’ on wages from the upper ranges; further deterioration in the indicators for income inequality and the low efficiency of the social assistance system. The regressive trend of the overall tax and social security burden in the income range above the maximum insurable earnings is shown as an additional aggravating factor in this direction.
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Date published: 2016-11-08
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