ABSTRACT
At the end of this chapter, readers should understand:
That the justification for labour market regulation is based on the concept of market failure, the main forms of which are asymmetric information, externalities and monopoly/monopsony power;
The distinction between active and passive labour market policies;
The difference between the Phillips Curve, the Wage Curve and the Beveridge Curve;
The case for and against minimum wages, employment protection, wage-related unemployment benefits and equal opportunities policies;
Policies for dealing with the demographic challenge;
That labour market policies may have unintended consequences.
