flexibility with state-provided unemployment insurance and can be applied only to new entrants in the market without affecting the …

unemployment benefits to other, means-tested, non-employment benefits and this shift occurs in transition countries at rather early …Non-employment rates in all central and eastern European countries have increased dramatically thoroughout the … transition and are currently larger than those of the lowest income OECD countries. Non-employment benefits other than …

All OECD countries have either legally mandated severance pay or compensations imposed by industry-level bargaining in … case of employer initiated job separations. According to the extensive literature on Employment Protection Legislation such … transfers are either ineffective or highly distortionary. In this paper we show that mandatory severance is optimal in presence …