This course aims to give students an introduction to policy analysis from a governance perspective. Policy analysis deals with the capacity of political actors to design instruments in order to influence particular outcomes in different fields. Focusing on governance, rather than on governments, gives students a broad perspective about the range of relevant actors for the policy process. The course focuses particularly on labour market and social policies. Welfare and employment are key concerns of industrialized and industrializing political economies, both in terms of efficiency and equity. High employment levels in formal employment indicate an efficient use of human resources and skills. Formal employment is a central factor for the distribution of wealth in modern societies.