Structural Change, Welfare Systems, and Labour Reallocation

Presents policy prescriptions that take into account factors of political economy as well as the state of the policy-enforcement mechanisms in these countries. * Journal of Economic Literature *
As transition took place in Eastern Europe, the first order of business was to understand the interactions between the decline of the state sector, the growth of the private sector, and unemployment. The second was to think about the role of existing institutions, in particular labour market institutions, in shaping these evolutions. The third was to think about the best way to redesign the institutions. This remarkable book presents what we have learned at each step. It should be required reading for all those involved in understanding, guiding, and shaping transition. * Olivier Blanchard, Massachusetts Institute of Technology *
This book provides a sharp and penetrating analysis of the interaction between labour and social policies, and illuminates the often neglected influence of education systems, and institution-building. Highly recommended reading for everyone interested in post-socialist transition, labour economics, and welfare state reform. * Janos Kornai, Harvard University and Collegium Budapest *