This report sets out to describe what labour market segmentation is and why it is problematic for the labour market and society, as well as disadvantaged groups. It takes a broad view of the term to examine the situation that arises when the divergence in working conditions between different groups of workers is attributable to factors other than differentials in human capital levels. The report explores which policies or instruments are most effective in combating labour market segmentation, taking into account specific situational characteristics. The report offers a novel approach to the study of labour market segmentation that combines a quantitative empirical analysis with a policy analysis.