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.
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