The main objective of this article is to analyse the institutional framework of labour market function. Theoretical literature has created a set of institutional aspects such as employment protection legislation, structure of wage bargaining, taxation of labour, active labour market policies, the system of unemployment benefits. On the basis of these institutional aspects and their setting we can judge general labour market setting or we can determine the dimension of labour market flexibility. Attention is also paid to influence of these institutional aspects on employment or unemployment.
wage bargaining, unemployment benefits, taxation of labour, Labour market, institutional aspects, employment protection legislation, active labour market policies
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