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

Posted: 5 Jan 1999

See all articles by Derek C. Jones

Derek C. Jones

Hamilton College - Economics Department

Mariana M. Kotzeva

University of National and World Economy (UNWE) - Department of Statistics and Econometrics

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.

JEL Classification: I3, P00

Suggested Citation

Jones, Derek C. and Kotzeva, Mariana, Work Incentives and Other Effects of the Transition to Social Assistance in the Transition Economies: Evidence from Bulgaria. Empirical Economics, Vol. 23, Issue 1/2, 1998. Available at SSRN: https://ssrn.com/abstract=123411

Derek C. Jones (Contact Author)

Hamilton College - Economics Department ( email )

198 College Hill Road
Clinton, NY 13323
United States
315-859-4381 (Phone)
315-859-4477 (Fax)

Mariana Kotzeva

University of National and World Economy (UNWE) - Department of Statistics and Econometrics ( email )

BG-Sofia
Bulgaria

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