Balla, Katalin (contributor); Köllő, János (contributor); … - 2006
We extend the benchmark model of Aghion and Blanchard (1994), assuming two segments of the emerging private sector that … differ in workers' productivity. We look at the paths of employment, wages, taxes, labor costs and profits during and after … the transition, up until the shock is fully absorbed. Viability is a function of the speed of job destruction and the …