Transition to market economics: Employment and informal activity in rural areas |
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Authors: | Mieke Meurs Stanka Dobreva Veska Kouzhouharova |
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Institution: | (1) American University, USA;(2) Institute of Sociology, Bulgarian Academy of Sciences, Bulgary |
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Abstract: | According to the neo-liberal model, the high levels of unemployment and collapsing real wages of transition will reallocate
labor to new activities. But whether and how households actually reallocate labor is the subject of growing debate. We use
survey data from Bulgaria to develop a typology of rural households based on their labor allocation characteristics. We find
a diversity of outcomes. A significant share of households experience no change in labor allocation, some shift labor to own
commercial enterprises, but a significant minority are displaced from the emerging market economy. Potential for informal
activity among these households appears limited. Of great concern is the regional concentration of such households. |
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