The relative flexibility of the United States labor market explains why ________ in the United States than in Europe.

Question

Quizplus · Accepted Answer

The relative flexibility of the U.S. labor market, characterized by less stringent labor laws, lower levels of unionization, and a more dynamic job creation and destruction process, contributes to greater income inequality, slower real wage growth, and lower unemployment compared to Europe. This flexibility allows for easier hiring and firing, leading to these outcomes.

The Relative Flexibility of the United States Labor Market Explains