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This paper does two things. First, it articulates what are the main implications of theoretical and empirical research for design of labor market policies and labor market institutions. Second, in this light, the paper analyzes the IMF’s labor market recommendations since the beginning of the crisis, both in general, and more specifically in program countries.

Manpower Policy --- Unemployment --- Recessions --- Business & Economics --- Labor --- Public Finance --- Unemployment: Models, Duration, Incidence, and Job Search --- Labor Contracts --- Wages, Compensation, and Labor Costs: General --- Demand and Supply of Labor: General --- Unemployment Insurance --- Severance Pay --- Plant Closings --- Labour --- income economics --- Public finance & taxation --- Employment protection --- Wages --- Unemployment rate --- Labor markets --- Unemployment benefits --- Expenditure --- Manpower policy --- Labor market --- Unemployment insurance --- Portugal --- Income economics