The problem of "ageing populations" is common to all European countries. The economic policy debate has concentrated so far mainly on the sustainability and the appropriate design of social security systems. However, ageing will have important effects of the composition of labor supply whose effect have not yet been studied in depth. The aim of this exploratory workshop is to explore how ageing may affect income inequality and unemployment, and what the proper policy should be concerning e.g. subsidies to youth employment or seniority pay rules. The workshop will provide evidence on the quantitative importance of changes in the composition of the work force and will indicate directions for future research. The workshop will help to orient the research to be undertaken under the Thematic Network 'ENEPRI' financed under the 5th FP.