Labour market regulation is the subject of much theoretical work as well as of extensive measurement and empirical assessment efforts. In this paper, Professor Bertola reviews this work from both theoretical and empirical perspectives. His review clearly points to the critical importance of a "balanced" theoretical framework of labour regulation which takes into account how historical, political and economic structural factors shape the motivation and effects of labour market policies. He concludes by outlining directions for future research, particularly concerning empirical work on the determinants of labour market institutions in rapidly changing environments.