The WSJ tells readers that "despite some changes, euro-zone labor markets remain less flexible than the U.S.'s." While the article implies that labor market inflexibility (e.g. unions and employment protections) is responsible for weak job and productivity growth, that is not what the research shows.
Countries with very strong unions and labor market protections, such as Denmark and Sweden, enjoy unemployment rates that are comparable or even lower than in the United States. For this reason, the OECD now encourages countries to try to emulate the labor policies pursued by these countries, if they want to maintain both strong job growth and provide their populations with economic security.
Unlike many news organizations, the Prospect has remained staunchly committed to keeping our journalism free and accessible to all. We believe that independent journalism is crucial for a functioning democracy—but quality reporting comes at a cost.
This year, we’re aiming to raise $75,000 to continue delivering the hard-hitting investigative journalism you’ve come to expect from us. Your support helps us maintain our independence and dig deeper into the stories that matter most.
If you value our reporting, please consider making a contribution today. Any amount helps secure our future and ensure we can continue holding power to account.