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Some commentators argue that since about 1980 the natural rate of unemployment in Europe has risen substantially and is now higher than that in the

Some commentators argue that since about 1980 the natural rate of unemployment in Europe has risen substantially and is now higher than that in the USA. They attribute this change to much more substantial labour market inflexibilities in Europe. What are some of the problems relating to this potential explanation of the relative performance of the European labour markets compared to the USA.

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