The persistently higher unemployment rates among European countries compared to the United States reflect higher structural unemployment in Europe.

Question

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Structural unemployment refers to unemployment caused by a mismatch between the available jobs and the skills or location of the unemployed individuals. Europe has greater job protection policies, which can make firing workers more difficult and lead to higher structural unemployment. In contrast, the US has more flexible labor markets, which can allow workers to move to new jobs more easily and reduce structural unemployment.

The Persistently Higher Unemployment Rates Among European Countries Compared to the United