Work Incentives and Other Effects of the Transition to Social Assistance in the Transition Economies: Evidence from Bulgaria

Type of Work

Article

Date

1998

Journal Title

Empirical Economics

Journal ISSN

0377-7332

Journal Volume

23

Journal Issue

1-2

First Page

237

Last Page

261

DOI

10.1007/BF01205686

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.

Notes

JEL Classification: I38, J65, P23

Hamilton Areas of Study

Economics

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