||This thesis consists of three papers about labor market institutional environment. The first paper “Labor Market Institutions and Their Effect on Labor Market Performance in the New EU Member Countries” estimates the effects of labor market institutions on various performance indicators (unemployment, long-term unemployment, employment, activity rate) in European countries. The results confirm that high taxes increase unemployment, whereas active labor market policies tend to reduce it. The paper also shows that stricter employment protection, higher taxes, and a larger economic burden represented by the minimum wage decrease employment and activity rates. The second paper “Labor Market Institutions and Their Impact on Shadow Economies in Europe“ analyzes the role of labor market institutions in explaining developments of shadow economies in European countries using several alternative measures of the shadow sector. The results indicate that the one institution that unambiguously increases shadow production and employment is strict employment protection legislation. Other labor market institutions have less straightforward and statistically robust effects, and their impact often differs in the old and new EU member states. The third paper “The Minimum Wage: Labor Market Consequences in the Czech Republic” aims to quantify the impact of the minimum wage on labor market performance in the Czech Republic. The results indicate that the minimum wage has had a significant impact in terms of increasing regional unemployment and reducing the employment probabilities of low-paid workers.