The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

European Labour Markets

  • Giuseppe Bertola
Reference work entry


Labour taxes and subsidies, collective wage bargaining, and employment protection legislation affect labour market outcomes in European countries more strongly than in other advanced countries. This article outlines theoretical approaches to their motivation and consequences and reviews empirical insights from comparative crosscountry studies of how employment, unemployment, and wage dynamics are shaped by the interaction between institutions, macroeconomic developments, and structural features.


Active labour market policies Centralized wage determination Efficiency wages Employment protection legislation European labour markets Health insurance Inflation Job creation Labour market search Labour supply Labour taxes Minimum wages Pensions Structural change Tax wedges Training Unemployment insurance Unemployment subsidies Wage floors Wage rigidities Women’s work and wages 

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© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Giuseppe Bertola
    • 1
  1. 1.