These continue to be difficult times for the labor markets of the industrialized nations. Shifts in labor demand, deregulatory impulses, and the ongoing process of globalization have each impacted the labor markets of the United States and Europe. In the face of the globalization of economic relations and the challenge of the NICs, employment has stagnated in some member states of the EU - in sharp contrast to the United States. Even though several European countries have introduced seemingly successful labor market reforms, whether Euroland as a whole will be able to cope with heterogeneous labor market dynamics and rising immigration is an open question. This theme provides the backdrop to this book. Its main focus is on labor market rules, unemployment, and aspects of the social security system. Theory and practice receive equal attention. Options for reforming labor markets and the social security system provide the policy content.

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