Facing the globalization of economic relations and the challenges of NICs and Eastern Europe, employment in most EU countries has stagnated. The focus here lies on labour market rules, unemployment dynamics, structural change and aspects of the social security system. Theoretical and empirical aspects as well as policy issues are discussed. Issues related to European Monetary Union, which could compound labour market problems, are also addressed, and options for reforming labour markets and the social security systems are analyzed.
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