Millions of East-Europeans started businesses during the transformational recession but, according to a wide-spread interpretation, many of them did so only temporarily and 'unwillingly' under the threat of unemployment. The paper looks at the relevance of the 'disguised unemployment approach to...

The paper analyses regional relative wages using individual and firmlevel data from Hungary 1986-96. In regions hit hard by the transition shock labour costs fell substantially; the estimated elasticities of wages with respect to regional unemployment were in a range typical of mature market...

The paper addresses the question why Hungarian state enterprises cut employment by two-digit percentages in the last years of state socialism. It argues that job destruction was a result of changing incentives and liberties (harder budget constraint, stronger insider power, loosening political...