Abstract
Comparison of labour market institutions in EU countries shows a wide variety of functioning and regulation. This is a potential source of divergence between European countries. As such, it could be an obstacle to the proper functioning of the Economic and Monetary Union and require some harmonisation. However, this institutional disparity must indeed lead to differences in wage and employment formation. However, empirical analysis of the macroeconomic adjustment of wages and employment provides a priori more homogeneous picture of situations across countries. Moreover, differences in adjustment between European countries do not overlap with institutional disparities. In particular, labour markets with very different functions, such as those in the United Kingdom and the Netherlands, are characterised by similar responses of wages and employment to the economic environment.