How salaries „grow“ in a time of crisis?

Statistics reported growth of labor costs / hourly / – even though Bulgaria has the highest growth in the EU. For some this is an occasion for joy, however, incomes grow. For others it is cause for pessimism, because they lose competitiveness in times of crisis. Actually, however, hardly anyone really believes that wages in Bulgaria are increasing – and the fastest in the EU. Somehow, not many people who are praised by increased wages – much less this happens in all sectors. Then we need an alternative explanation of what is happening. Here is a plausible explanation. Imagine that you are an employer and you have 100 employees. 50 of them earn higher salaries / example 1000 € / and 50 receive low wages / 300 lv. Accordingly, the average wage is 650 leva coming crisis and to reduce costs, but also to retain skilled employees. In other words, fire is mostly low-skilled and low paid. From your 100 workers dismissed 50 underpaid employees. Already have 50 workers by 1000 leva salary – ie average salary is 1000 EUR dismissal mainly low-skilled and low paid employees to automatically lifting the average wage even though no individual receives a higher salary. And because most employers follow a similar strategy, the same is happening nationally. Moreover, even in the reduction of individual salaries average salary may grow again. For example, as in the example above, the employer paid workers fired at the same time lowered the wages of visokoplatenite 1 000 900 leva. I.e. average wage is 900 leva, which is higher than the original 650. I.e. with unchanged or decreasing salaries average pay may be increased – provided employment to decrease and this decrease is mainly among low-paid. Here’s our explanation for the phenomenon of „rising wages in crisis.“ There are other factors that act in the same direction, but they will leave them for another time.