Labour market institutions

The period before the crisis was characterised by a big push for labour market deregulation around the world. This text, while posing some critical question in regards to excessive regulation, examines the beneficial effects of labour market institutions, when they are well designed. Organized as a survey, the chapter first discusses in some detail the meaning, justification and implications of an overarching concept: "protected mobility". Then it separately reviews four main components of labour market institutions (Social Dialogue, Employment Protection Legislation, Unemployment Insurance and Employment Services) analyzes their objectives and means, and provides examples of interesting practices in developed as well as in developing countries. Last, it presents remarks on the interplay of these institutions in the perspective of the productive transformation of an economy.