ABSTRACT
This chapter offers an instrument for the analysis of the institutional labour market policy in Rumania during the transition to the market economy. Rumanian labour market reform includes two main objectives. The first is the creation of socio-economic conditions necessary for the operation of labour market mechanisms which allow employers and employees to negotiate. The second is the establishing of an institutional system to enable the labour market administration to assist unsuccessful job seekers with minimum strains and within a legal framework. Wage differentiation policy was based in Rumania mainly on the increase of the difference between minimum wage and average wage. The Rumanian’s transitional wage and social protection policy appears as a game simultaneously played by government, on the one side, with several other partners on the other side. The local labour markets will become integrated and pass towards a socio-economic model enabling to implement Rumania’s plan meant for joining the European Union.
