In contrast to New Zealand, contingent-fee cases in the United Kingdom are more likely to be settled than pursued to a full hearing (Hammersley et al., On the other hand, there is some evidence, based on US-Canada comparisons, that the “loser pays” system of awarding trial costs is more efficient in discouraging unfounded lawsuits than contingency fees (Nielsen, 1999). In some cases, notably in Estonia, Greece, Italy, Portugal, the Slovak Republic and Spain, the breadth of reforms was significant. These developments reinforce a tendency that emerged since the beginning of this century and is in marked contrast with the typical trend of the 1990s, whereby a number of countries implemented partial reforms of employment protection legislation, in which regulations on temporary contracts were loosened while maintaining stringent restrictions on regular contracts, thereby contributing, in many cases, to the emergence of dual labour markets. Based on a large theoretical and empirical literature, summarised in the chapter, it can be expected that this new wave of reforms will increase labour reallocation and yields dividends in terms of job creation as well as efficiency and productivity growth in the near future.