Balla, Katalin (contributor); Köllő, János (contributor); … - 2006
differ in workers' productivity. We look at the paths of employment, wages, taxes, labor costs and profits during and after … strength of the initial shock to employment. In the long run, the system asymptotically converges to full employment. If the …We extend the benchmark model of Aghion and Blanchard (1994), assuming two segments of the emerging private sector that …