This chapter looks at some of the labour market outcomes of economic reform policies in terms of inequality. The significance of the role of labour market institutions in the relationship between reform policies and inequality remains controversial. Some see labour market institutions as a hindrance to more efficient development and growth, while others argue that, without proper labour market institutions, an economy cannot progress. It should be recalled that labour market policies, regulations and institutions have at least three goals: improving allocative efficiency (matching supply and demand), improving dynamic efficiency (increasing the quality of the labour force) and improving or maintaining a sense of equity and social justice among labour force participants. These different goals inform the discussion throughout the chapter.