The same wage differentiation is observed for other public-sector economic activities.

But this adaptation of the labour market also involves a certain wage differentiation, which would have to be agreed between social partners.

This partially explains the significant wage differentiation even within the publicly funded sector.

In summary, resulting wage differentiation comes from several sources:

Sufficient wage differentiation would improve employment opportunities for less skilled workers and in regions or sectors with high unemployment.

Mr President, in the annual report, the Commission calls - rather surprisingly - for greater wage differentiation between the regions.

There is a need all over Europe to reduce labour market rigidity that currently restricts wage differentiation and flexibility,' he said.

This requires, in particular, sufficient wage differentiation, greater labour mobility and more flexible product, labour and financial markets.

We are worried about the emphasis placed on wage differentiation in this scenario, in the way it is in the United States.

Regional wage differentiation, the design of the tax-benefit system and the functioning of the housing market therefore strongly affect the propensity to move.

In particular, labour market reforms should be aimed at increasing wage differentiation, lowering tax wedges, reducing skill mismatches and a better targeting of social benefits.

Moreover, it is hampered by a number of structural problems, such as low wage differentiation, skill mismatches, high tax wedges and low regional mobility.

In this respect, sufficient wage differentiation is required so as to improve employment opportunities for less-skilled workers and in sectors and regions with high unemployment.

• use possibilities of wage differentiation according to local, regional and sectoral conditions (see BEPG guideline 5).

Existing barriers already identified include a lack of wage differentiation, disincentives arising from tax-benefit systems, and the cost of moving (influenced by high transaction costs in the housing market).

The movement towards decentralisation of bargaining and individualisation of pay accompanied by a decline in unions, may mean more wage differentiation between industries, establishments and perhaps also occupations.

To judge from your draft resolution, if I have understood correctly, a certain wage differentiation between regions can only favour the downward revision of wages, and can only result in new relocations.

It takes the view that the strategy is clear but reminds Member States that much remains to be done as regards reforms: wage differentiation, labour market regulations, improvement in education and training, etc.

The labour market still suffers from a number of structural rigidities, such as inflexible working hours, an ineffective job-matching mechanism, insufficient wage differentiation and high effective entry wages for first-time job-seekers.

The dialogue on the bargaining structure will have to reinforce both the company level and wage differentiation; where the company level is reinforced, productivity is enhanced and individual contributions are appraised.

Moreover, further reforms are needed to encourage labour mobility by improving the transferability of pensions and healthcare rights and by allowing wage differentiation according to local, regional and sectoral differences in productivity.

Wage differentiation, which has consistently been advocated in theory but has often been disregarded in practice, must become a genuine goal for Parliament, which must specify clearly and resolutely the process to be followed to achieve it.

Reforms, in particular, are required to improve job intermediation, to enhance wage flexibility and increase wage differentiation, to improve education and to promote training and life-long learning in order to maintain and develop human capital.

Social situation and human development policies During the 1990s, recession, contraction in real wages, increase in wage differentiation, and the demise of part of the social safety net resulted in an increase in unemployment, poverty and social inequality.

We are asking that wage rate increases should be compatible with price stability and we believe that wage differentiation should be according to skill level, training and regional needs and work experience in accordance with page 55 of the Annual Economic Report.