01727cas a2200241 a 4500 AALejournalIMF006922 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451849967 1018-5941 BD-DhAAL BD-DhAAL Pujol, Thierry. The Role of Labor Market Rigidities During the Transition : Lessons From Poland / Thierry Pujol. Washington, D.C. : International Monetary Fund, 1996. 1 online resource (30 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students 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. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1996/077 Full text available on IMF http://elibrary.imf.org/view/journals/001/1996/077/001.1996.issue-077-en.xml IMF e-Library