Employers and employees – on both sides of the ‘minimum wages’ barricade

  • H. Blagoycheva University of Economics
Keywords: minimum income wage, employers, employee, employment, labour productivity.


The minimum wage is a legally established measure of the lowest amount that workers have to demand in exchange for their labor. It performs both an economic and a social function that makes it the subject of many discussions. The article examines different points of view and offers some arguments that justify the necessity to have a mandatory minimum wage. Most of the cases mentioned concern Bulgaria as it is the poorest country in the European Union with the lowest wages and with great power of employers' organizations.


Aaronson, D., French, E. & Sorkin, I. (2013). Firm dynamics and the minimum wage: A putty-clay approach, Working Paper, Federal Reserve Bank of Chicago, No. 2013-26, Federal Reserve Bank of Chicago, Chicago, IL.
Andreeva, A. & Yolova, G. (2014). Labor and social security law. Univ. ed. “Science and Economics”, Varna. [in Bulgarian]
Андреева, А., Йолова, Г. (2014). Трудово и осигурително право. Унив. изд. “Наука и икономика”, Варна.
Abbott, L. F. (2000). Statutory Minimum Wage Controls: A Critical Review of their Effects on Labour Markets, Employment, and Incomes. ISR Publications, Manchester UK, 2nd. edn.
Blagoycheva, H. (2013). Conflict Minimum Wage, Collection of Reports from the Scientific Conference "Economics and Society: Global and Regional Challenges in Bulgaria", UNWE - Sofia, October 31, 2013, pp. 392-400. [in Bulgarian]
Благойчева, Х. (2013). Конфликтната минимална работна заплата, Сборник с доклади от Научна конференция "Икономика и общество: глобални и регионални предизвикателства пред България", УНСС - София, 31 октомври 2013 г., с. 392-400.
Bodnár, K., Fadejeva, L., Iordache, S., Malk, L., Paskaleva, D., Pesliakaitė, J., Todorović Jemec, N., Tóth, P. & Wyszyński, R. (2018). How do firms adjust to rises in the minimum wage? Survey evidence from Central and Eastern Europe. ECB Working Paper No 2122, Wage Dynamics Network.
Chobanov, D. (2004). 20 arguments against the minimum wage. Diary, 01.12.2004. [in Bulgarian]
Чобанов, Д. (2004). 20 аргумента против минималната заплата. Дневник, 01.12.2004. Retrieved from: https://www.dnevnik.bg/print/arhiv_pari/2004/12/01/1598628_20_argumenta_protiv_i_za_minimalnata_rabotna_zaplata/.
Eurofound (2010). Working Poor in Europe, European Foundation for the Improvement of Living and Working Conditions.
Eurofound (2018). Statutory minimum wages 2018, Publications Office of the European Union, Luxembourg.
European Commission (2017). Labour market and wage developments in Europe: Annual Review 2017, Luxembourg, Publications Office of the European Union.
European Commission (2018). The effects of the minimum wage on employment: Evidence from a panel of EU Member States. Analytical Web Note, № 1, Luxembourg, Publications Office of the European Union.
Harasztosi, P. & Lindner, A. (2015), Who Pays for the Minimum Wage? Job Market Paper, October. Retrieved from: https://www.aeaweb.org/conference/2016/retrieve.php?pdfid
Horemans J., Marx, I. & Nolan, B. (2016). Hanging in, but only just. Part-time employment and in-work poverty throughout the crises, IZA Journal of European Labor Studies, Vol.5(1), pp.1-19.
International Labour Organization. (1970). General Survey concerning the Minimum Wage Fixing Convention, (No. 131)
International Labour Organization. (2006). Minimum wages policy. Retrieved November 13, Retrieved from: http://www.Ilo.org.
Manning, A. (2016). The elusive employment effect of the minimum wage. CEP Discussion Paper No. 1428, London School of Economics. Retrieved from: http://cep.lse.ac.uk/pubs/download/dp1428.pdf
Messmore, R. (2011). Increasing the Mandated Minimum Wage: Who Pays the Price? . Heritage.org. Retrieved October 5. Retrieved from:: https://www.heritage.org/budget-and-spending/report/increasing-the-mandated-minimum-wage-who-pays-the-price.
Neumark, D. & Wascher, W. (2006). Minimum wages and employment: A review of evidence from the new minimum wage research. NBER Working Paper 12663.
Parsons, D. O. (2008). The new Palgrave dictionary of economics, Vol. 5, 2nd ed., (eds.) Durlauf, S. N. and Blume, L. E., Palgrave Macmillan, London.
Picl, M. & Richter, P. (2014). Minimalni mzda a jeji vliv na nezaměstnanost v ČR, Acta Oeconomica Pragensia 6, pp. 51–65.
Schulten, T. (2014), Minimum Wage Regimes in Europe … and What Germany Can Learn from Them. Friedrich-Ebert-Stiftung, Department for Central and Eastern Europe, Berlin.
Slavova, Z. (2013). There is no reason at all to increase the minimum wage, IME, Economic Policy Review, № 646. [in Bulgarian]
Славова, З. (2013). Няма никакво основание да се увеличава минималната заплата, ИПИ, Преглед на стопанската политика, бр. 646. Retrieved from: http://ime.bg/bg/articles/nyama-nikakva-osnovanie-da-se-uveliava-minimalnata-zaplata/.
Starr, G. (1993). Minimum wage fixing : an international review of practices and problems (2nd impression (with corrections) ed.). Geneva: International Labour Office. p. 1.
Tsoneva, J. (2017). Race to the Bottom: The Battle over Minimum Wage in Bulgaria. Retrieved from: http://www.criticatac.ro/lefteast/race-to-the-bottom-the-battle-over-minimum-wage-in-bulgaria/.
Zandi, M. (2014). In Support of Raising the Minimum Wage. Moody’s Analitics, Retrieved from: https://www.economy.com/getlocal?q=DFF228B2-8D70-4B2B-B55D-11D4247B6E28&app=eccafile.

Abstract views: 125
PDF Downloads: 123
How to Cite
Blagoycheva, H. (2018). Employers and employees – on both sides of the ‘minimum wages’ barricade. Fundamental and Applied Researches in Practice of Leading Scientific Schools, 28(4), 9-15. https://doi.org/https://doi.org/10.33531/farplss.2018.4.02