Will The French Always be Lazy?

European countries are diverse in their economies, but have a degree of similarity. They have certainly suffered from higher unemployment in comparison in the UK and USA. They also appear to have less market flexibility. It would seem, therefore, that there is a good case for cutting down on market regulation. However, there are many other factors that might effect unemployment, such as structural, capital, and demographic factors. Therefore we should not expect complete results from such reforms, or fast results, owing to hysteresis. As always, the degree to which economics believe Labour market reforms could benefit Europe depends to a large degree on their theoretical stand point, with classical economists like Says and Friedman suggesting a large effect, whereas Keynes suggesting that the effect would be limited. IT is also worth noting that, Although Europe has a higher level of unemployment, they also boast a higher level of productivity in comparison to the UK, and in many cases a higher standard of living. So Employment may well not be the be all and end all of economic strength.

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