Wage dynamics and Bulgaria co-movement and causality

Vasilev, Aleksandar (2019) Wage dynamics and Bulgaria co-movement and causality. South-Eastern Europe Journal of Economics, 17 (1). pp. 91-127. ISSN 1109-8597

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Wage dynamics and Bulgaria co-movement and causality

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Abstract

Motivated by recent debates on the possible role of wages as an income policy tool,
in this study we examine the dynamic inter-relationship between wages in Bulgaria,
mainly in the context of its EU accession. Relative to the WDN studies on the other
EU member states, the novelty in this paper is the inclusion of the minimum wage
as a possible conditional determinant of the other two wages. We demonstrate
that minimum wage increases do not cause changes in average wages in either
the government or the private sector. Using variety of econometric tests, we also
demonstrate the leadership of private sector wage over public compensation and
recommend the implementation of policy measures aimed at labor productivity
growth.

Keywords:public sector wages, private sector wages, minimum wages, causality
Subjects:L Social studies > L140 Econometrics
L Social studies > L113 Economic Policy
L Social studies > L130 Macroeconomics
Divisions:Lincoln International Business School
ID Code:35489
Deposited On:08 Apr 2019 12:49

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