We extend the benchmark model of Aghion and Blanchard (1994), assuming two segments of the emerging private sector that differ in workers' productivity. We look at the paths of employment, wages, taxes, labor costs and profits during and after the transition, up until the shock is fully...

The paper investigates exit probabilities of registered unemployed to active labour market programmes using administrative records from the unemployment register of the Hungarian National Labour Centre. We estimate parametric duration models that summarise variation in exit probabilities with...

This report on Lithuania is the tenth country study published in a series of reports looking into how policies connect people with jobs. This report is produced in the framework of a project of the OECD with the European Commission which aims to raise the quality of the data collected and their...

We consider positive and normative aspects of subsidizing work arrangements where subsidies are paid in time of low demand and reduced working hours so as to stabilize workers' income. In a matching framework such an arrangement increases labor demand. Tightening eligibility to short-time work...

The search-matching model is well suited for an equilibrium evaluation of labor market policies. When those policies are targeted on some groups, the usual juxtaposition of labor markets is however a shortcoming. There is a need for a setting where workers' productivity depends on employment...