much more efficient than the private agency. Moreover, the level of the unemployment benefits is a disincentive to manage … agency to manage a worker having some low probabilities to exit from unemployment. If these conditions are satisfied, the … existence of private employment agencies improve the labor market through shorter unemployment spells and a lower unemployment …

with a small one. Surprisingly, the end of transition is also characterized by lower unemployment when there are massive … layoffs - because in the short run, the high unemployment implied by the massive decrease makes job creation in the …