Economic Transition, Entrepreneurial Capacity, and Intergenerational Distribution, Issues 2002-2180

Front Cover
International Monetary Fund, Oct 1, 2002 - Structural adjustment (Economic policy) - 27 pages
0 Reviews
A defining feature of transition economies is the expansion of the private sector. Motivated by the observation that new enterprises in transition economies seem to have a strong preference for recruiting young people, this paper studies intergenerational redistribution following from market reforms that stimulate private sector activity and firm creation. We implement a theoretical model and find that in some cases more than half of the current working age population may be made worse off by an increase in entrepreneurial capacity. This may help explain why market reforms have been voted down despite their long-run benefits.

From inside the book

What people are saying - Write a review

We haven't found any reviews in the usual places.


Model Results
Concluding Remarks

Other editions - View all

Common terms and phrases

Bibliographic information