Wage Dynamics and Bulgaria Co-Movement and Causality

Aleksandar Vasilev and Hristina Manolova

South-Eastern Europe Journal of Economics, 2019, vol. 17, issue 1, 91-127

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 (search for similar items in EconPapers)
JEL-codes: C32 E62 J3 J4 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Wage Dynamics and Bulgaria: Co-movement and Causality (2019)
Working Paper: Wage Dynamics in Bulgaria: Co-movement and Causality (2017)
Working Paper: Wage Dynamics in Bulgaria: Co-movement and Causality (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:seb:journl:v:17:y:2019:i:1:p:91-127

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