Moreover, sufficient wage differentiation is needed to improve employment opportunities for less skilled workers and in regions or sectors with high unemployment.
In this respect, excessive wage regulations are undermining job creation, in particular for young and less qualified workers as well as for all those who face problems entering the labour  9  See, for example, the analysis of the role of wage developments in the 1970s in explaining European unemployment in O. Blanchard, “The medium run”, Brookings Papers on Economic Activity, No.