Like many transition economies, Slovenia is undergoing profound changes in the workings of the labor market with potentially greater flexibility in terms of both wage and employment adjustment. We investigate the impact of the changing labor market for Slovenia using unique longitudinal matched...

Estonia shows that intense restructuring after the opening of product and labor markets need not lead to massive increases in unemployment. The evidence suggests that flexibility in the labor market is vital in a transition's success, especially in a country undergoing rapid reform. With the...