1. Editora s introduction. 2. One money, one market: the effect of common currencies on trade: A.K. Rose (University of California, Berkeley and CEPR). 3. Unemployment, growth and taxation in industrial countries: F. Daveri and G. Tabellini (University of Parma and IGIER; Department of Economics and IGIER, Bocconi University, CEPR and CES--ifo). 4. Labour market implications of EU product market integration: T.M. Anderson, N. Haldrup and J.R. Sorenson (University of Aarhus, EPRU and CEPR; University of Aarhus; University of Aarhus). 5. The Netherlands and the United Kingdom: a European unemployment miracle? S. Nickell and J. van Ours (Centre for Economic Performance, London School of Economics and CEPR; Center for Economic Research, Department of Economics, Tilburg University, Institute for Labour Studies (OSA) and CEPR). 6. Economic reforms and labour markets: policy issues and lessons from Chile: S. Edwards and A.C. Edwards (University of California, Los Angeles and National Bureau of Economic Research; California State University, Long Beach).