This paper develops a two-period model of enterprise shutdown during post-Soviet transition, when firm performance is at best a highly noisy signal of its viability in the evolving market economy. The paper focuses at the industry level, taking a normative industrial-policy perspective, and...

This paper seeks to document and analyse changes in the distribution of wages and employment in the transition countries since the collapse of communism. Most countries experienced an increase in wage inequality during the initial shock of the transition. Proximate causes of this increase seem...