The article gives a comprehensive overview on the characteristics of income supplement for long-term unemployed. It applies three different approaches, such as, distribution and ratio of recipient persons by demographic and social attributes, more detailed on household level, incorporates the...

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...