ABSTRACT
The division between two absolutely different production systems in the East and West since the Second World War which were in total confrontation. Many transformations in the East have been a by-product of the collapse of the former planned economies and the subsequent transition towards capitalism. While unemployment in the poorest regions seems to be more sensitive to business cycle fluctuations, macro-economic and labour movements at aggregate level are more autonomous with respect to changes in economic growth in the rich regions. Causes for the divergences, both regionally and nationally, are many and are concentrated around a set of institutional variations all over Western Europe. National labour markets in Western Europe show the common feature of high regulation but with important disparities in their dynamics and potentiality for adjustment and equilibrium. Labour policies oriented to demand side seem to be more effective when they are implemented at the local and/or regional level.
