Why is Unemployment so High in Bulgaria?

Rutkowski, Jan

World Bank, Washington, DC

关键词: UNEMPLOYMENT LEVELS;    LABOR MARKET CHARACTERISTICS;    INPUT OUTPUT ANALYSIS;    TRANSITION ECONOMIES;    JOB CREATION;   

DOI  :  10.1596/1813-9450-3017
RP-ID  :  WPS3017

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

The author seeks to determine the mainfactors behind poor labor market outcomes in Bulgaria.Unemployment in Bulgaria is high and of long duration. Theaccumulation of the unemployment stock has been caused byrelatively high inflows into unemployment coupled withlimited outflows. These features of the Bulgarian labormarket are typical of other transition economies in CentralEurope and exploring their sources is of broad interest. Theauthor focuses on determinants of and constraints to jobcreation. He uses data on job creation and job destructionfrom a survey of employment in all registered firms. Hefinds that the source of large inflows into unemployment isintensive enterprise restructuring associated with a highpace of job reallocation. However, job creation falls shortof job destruction. Three main factors account for thelimited job creation and hiring, and thus for low outflowsfrom unemployment: a) The unfriendly business environment,reflected by a low rate of new firm formation, and arelatively small, small and medium enterprise sector. b)Labor market rigidities, including excessive hiring andfiring costs. c) Skill and spatial mismatches brought aboutby enterprise restructuring, as well as low skills andmarginalization of the long-term unemployed who cannotsuccessfully compete for new jobs. The author recommends athree pronged strategy to improve labor market performance:(1) removing bureaucratic constraints to entry and expansionof firms; (2) enhancing labor market flexibility throughlowering hiring and firing costs; and (3) improving theeducational system so as to equip workers with broad andportable skills.