Harvard University's Experts Appreciate Azerbaijan's Wage Reforms

12/6/2024 7:17:39 AM

(MENAFN- Trend News Agency) BAKU, Azerbaijan, December 6. Harvard University's GrowthLab Center has lauded Azerbaijan's transformative initiatives in the wage sector, Trend reports via Azerbaijan's State Tax Service under the Ministry of Economy.

The improvements enacted in Azerbaijan's labor market garner global attention from specialists. The outcomes of the tax system reforms initiated in 2019, designed to promote the labor market, received great praise from specialists at Harvard University. The Growth Lab Center of Harvard University, after analyzing the reform indicators within the diagnostic evaluation project of Azerbaijan's economy, acknowledged our country's performance in this area as a commendable example.

Experts assert that the reforms implemented by the State Tax Service under the Ministry of Economy, grounded in labor market stimulation policies, have significantly advanced the legalization of labor relations in Azerbaijan. The government has streamlined procedures, facilitating commercial entities to legalize their operations with more ease and reduced expenses. ( ).

To note, transformative advancements have been identified across all critical metrics of reform outcomes. The newly implemented incentives within the tax framework catalyzed a remarkable surge, achieving a 32.1 percent escalation in the volume of formal labor agreements. The mandatory state social insurance contributions have surged by 2.2 times over a five-year trajectory, catalyzing a significant uptick in social fund revenues and alleviating the fiscal pressure on the state budget. Overall, the transformative reforms catalyzed a positive trajectory in economic turnover, driving the expansion of dynamic“entrepreneur-entrepreneur” and “entrepreneur-consumer” interactions within the vibrant non-oil sector.

Moreover, specialists from Harvard University regard this as a pertinent illustration of the efficacy of incentives for company legality. By implementing appropriate laws, substantial advancements can be achieved in the legalization of labor relations, and other nations with analogous issues should regard Azerbaijan's strategy as a viable exemplar.

Information about the research is posted on social media by the Growth Lab Center at Harvard University:

Link to the Harvard University-run Growth Lab Center's video analyzing wage reforms in Azerbaijan:

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