With the collapse of the socialist system in Eastern Europe and the advancement of the European Union integration process of the formerly communist countries, many of which are increasingly likely to join the single European market in the foreseeable future, the informal sector in transitional...

Motivated by the importance of the “displaced worker” phenomenon in both the East and the West, in this paper the authors analyze a model of job search behavior where the unemployed worker has imperfect knowledge of the wage offer distribution. This paper attempts within the limits imposed...