This chapter reviews what economists have learned about the impact of labor market institutions, defined broadly as government regulations and union activity on labor outcomes in developing countries. It finds that: (1) Labor institutions vary greatly among developing countries but less than...

Introduction: Policies for All Seasons: The Post-Cold War Era -- Part I Inequality -- Income Inequality and Effectiveness in Redistribution -- Changing Perspectives on Inequality and Development -- Income Inequality and Labour -- Unions and Wage Inequality -- Economic Transformation and the...