Chadha, Bankim; Coricelli, Fabrizio; Krajnyák, Kornélia - In: IMF Staff Papers 40 (1993) 4, pp. 744-780
This paper develops a model of the process of reallocation of labor from the state sector to the private sector. When growth is exogenously determined, we show that in the initial stages of transition unemployment will rise. After a critical stage in the transition process, restructuring is...