The adjustment of labour markets during transition has been quite different from that anticipated by the Optimal Speed … of Transition (OST) literature. In particular, it has involved stagnant unemployment pools, large flows to inactivity and … the alternative between a big-bang strategy and a gradual transition process. This amounts to assuming that governments …

private sector. The transition is shown to be costly in that it entails unemployment and a deterioration of the fiscal balance …. The interaction of fiscal constraints with the transition process is examined. It is shown that fiscal constraints may … induce the government to maintain the state sector, slowing the speed of transition, and could jeopardize the eventual …

process of transition of the state-owned enterprise sector. A set of theoretical tools is assembled which permits the analysis …

evolution of unemployment together with that of inflows into unemployment and vacancies. The comparison of the transition …