The Correlation: minimum wage - unemployment in the conditions of transition to digital economy

TL;DR

This paper analyzes the relationship between minimum wage changes and unemployment rates in Bulgaria from 1991 to 2021, considering the transition to a digital economy and upcoming European legislation.

Contribution

It provides an empirical analysis of the correlation between minimum wage and unemployment during economic transition, incorporating recent digital economy considerations.

Findings

Identifies the correlation direction and strength between minimum wage and unemployment.

Highlights the impact of digital economy transition on minimum wage policies.

Provides policy implications for European wage regulation.

Abstract

The research is done in the context of the upcoming introduction of new European legislation for the first time for regulation of minimum wage at European level. Its purpose is to identify the direction and strength of the correlation amongst changes of minimum wage and unemployment rate in the context of conflicting findings of the scientific literature. There will be used statistical instruments for the purposes of the analysis as it incorporates data for Bulgaria for the period 1991-2021. The significance of the research is related to the transition to digital economy and the necessity for complex transformation of the minimum wage functions in the context of the new socio-economic reality.