The Role of Labor Market Rigidities During the Transition : Lessons From Poland /
The transition to a market economy has been analyzed primarily from a stabilization prospective. To complement that approach, we focus on a pure relative price shock and subsequent price adjustments. A model of monopolistic competition with costly labor adjustment indicates that relative price shock...
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| Formaat: | Tijdschrift |
| Taal: | English |
| Gepubliceerd in: |
Washington, D.C. :
International Monetary Fund,
1996.
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| Reeks: | IMF Working Papers; Working Paper ;
No. 1996/077 |
| Online toegang: | Full text available on IMF |
| Samenvatting: | The transition to a market economy has been analyzed primarily from a stabilization prospective. To complement that approach, we focus on a pure relative price shock and subsequent price adjustments. A model of monopolistic competition with costly labor adjustment indicates that relative price shocks can induce overall output decline because rigid sectoral real wages do not adjust to offset sectoral price changes, and firms that benefit from the price shock engage in monopolistic behavior. In Poland, empirical evidence suggests that relative wage rigidity contributed to lower employment and output, but there is no strong evidence that competition was important. |
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| Beschrijving item: | <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required |
| Fysieke beschrijving: | 1 online resource (30 pages) |
| Formaat: | Mode of access: Internet |
| ISSN: | 1018-5941 |
| Toegang: | Electronic access restricted to authorized BRAC University faculty, staff and students |