Explain the different attitudes european workers

Assignment Help International Economics

Reference no: EM1375121

In the twenty year period 1980-2000 virtually no private jobs were developed in the nations of the European Union (EU) as compared to 33 million new private sector jobs in the United States. Unemployment in the EU reached 10% as compared to 4.1% in the U.S. As compared to U.S. firms, EU firms pay their governments an amount equal to 50 to 200% of employees' wages as "social charges." In addition government-mandated minimum wages often far exceed the value low-skilled workers might contribute to potential employers. Consequently low-skilled unemployed cannot find jobs. Firing workers is costly because of government required severance pay is high. Thus most new hires are temporary workers on short-term contracts. Meanwhile the unemployment rate in the EU among persons under 25 averages around 20%.

If the reasons for the EU's high structural unemployment are so obvious, why aren't governments relaxing strict labor laws and reducing social charges levied on employers?

Are there cultural reasons that may explain the different attitudes European workers hold versus the attitudes held by US workers?

Reference no: EM1375121

Questions Cloud

Comparative and absolute advantage in trading : Suppose if you were President of the United States and you were making decisions on trading, would you rather have a comparative or absolute advantage in trading?

Difference between comparative and absolute advantage : Describe the difference between comparative advantage and absolute advantage.

Terms of as-ad effects on the us economy : I think the ECB made a bad decision past week in keeping its interest value unchanged. European interest value policy is an issue that Americans need to take more seriously.

Question about economies of scale : Suppose you are the owner of a small bank in a state that is planning allowing interstate banking. You do not like this because it will be possible for large money center banks in Washington,

Explain the different attitudes european workers : In the twenty year period 1980-2000 virtually no private jobs were developed in the nations of the European Union as compared to 33 million new private sector jobs in the United States.

Provide references : I would have selected JEL industries as it is located in a nation which is part of the European Union and using Euro as its currency.

Regulatory competition : Suppose you are the owner manger of an innovative computer software firm, and your latest item is so revolutionary and superb it has resulted in your firm controlling 98 percent of the industry in terms of total sales.

Examine the gatt-wto regulations : "Time" magazine, Canadian edition, has recently published an article on U.S. agricultural subsidies titled "Why our Farm Policy is Failing", November 2nd, 2007.

How to calculate consumer price index : Can anyone discover how the Consumer Price Index (CPI), primary measure of inflation used through the government, is computed?

User Account

All Pages