Bulgaria -Shadow economy discussed -September 04, 2014

During a conference attention was paid to the growing problem with the shadow economy. It was reported that the shadow economy represents nearly a third of the country’s total GDP, which is well-above one and a half times the EU average.

During a conference attention was paid to the growing problem with the shadow economy. It was reported that the shadow economy represents nearly a third of the country’s total GDP, which is well-above one and a half times the EU average. Based on a number of sources there was a general decline between 2002 and 2007 followed by a slight increase afterwards. The findings suggested that the increase occurred through a shift in the instances of undeclared work, for example from working without a contract to receiving part of the wages in envelopes, which spiked in 2013. Reference was made to a survey conducted by the ministry of labour with the main conclusion that employers know how to take advantage of the system, but the employees do not due to the lack of information or perceived self-interest from their side. Some of the recommendations of the conference included the implementation of a legal definition for undeclared work, which is currently missing and a coordinated approach at strategic and operational level, which would probably involve a national strategy of counteracting the issue.

English: http://www.novinite.com/articles ...   

http://www.csd.bg/artShow ...   

 

For more information, please contact the editor Jan Cremers, Amsterdam Institute for Advanced Labour Studies (AIAS) cbn-aias@uva.nl or the communications officer at the ETUI, Mariya Nikolova mnikolova@etui.org. For previous issues of the Collective bargaining newsletter please visit http://www.etui.org/E-Newsletters/Collective-bargaining-newsletter. You may find further information on the ETUI at www.etui.org, and on the AIAS at www.uva-aias.net.


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