Government Distributional Concerns and Economic Policy During the Transition from Socialism
CEPR Working Paper No. 1662
Posted: 1 Sep 1998
Date Written: 1997
Before the transition governments had strong distributional objectives, which they pursued mainly by direct controls over state enterprise wage rates and hiring decisions, yielding a highly compressed wage distribution. During the reform they maintained similar controls over state enterprises but had to take into account competition from the new non-state sector that was mostly free from these controls.
JEL Classification: H10, H20, H30, O52, P50
Suggested Citation: Suggested Citation