The Informal Sector During Crisis and Transition

Ralitza Dimova (), Ira Gang and John Landon-Lane ()

No RP2005-18, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: One of the most notable phenomena during economic transition is the shrinkage of the public sector and expansion of the not working population, simultaneously with the expansion of both the formal and informal private sectors. We address the related labour dynamics of the pre and post 1996 crisis in Bulgaria with the use of a panel constructed from the 1995 and 1997 Bulgarian Integrated Household Surveys and a Markov chain model of job mobility. Our results support the hypothesis of substantial shrinkage of the public sector and movement out of the labour force.

Keywords: Econometric models (Economic development); Informal sector; Labour market; Socialism (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (19)

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