ABSTRACT

Inequality is a universal characteristic in labour markets, albeit the forms of and reasons for inequality may differ across nations and in times within a nation. Variations may further occur across administrative regions within the same country due to diverse economic opportunities and local policy regulations. The operation of the labour market involves a number of institutional actors, including the state, employers, workers, employment agencies and trade unions. Labour market institutions interact with each other and shape each other’s relative position and labour market outcomes for individual workers. To understand labour market inequality in a given country, it is important to investigate what labour market institutions are in place, how they function and interact, what impact they may have on groups of workers and, importantly, what choices, if any, individual workers may have in response to labour market opportunities and constraints.