Econ Essay 4.txt

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Econ Essay 4.txt
2012-10-08 15:42:03
econ essay

econ essay 4
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  1. (Essay 4) Discuss how Europe’s unemployment can be explained in terms of job creation problems
    • Employers believe wages are too high:
    • §  Companies do not wish to create jobs if a worker’s ware is higher thanthe revenue he or she would generate
    • §  Wages are high because of unions
    • §  Businesses also have to pay high employer taxes per employee to fund social welfare plans
    • Firing restrictions:
    • §  Reluctant to hire if they can’t fire
    • More difficult to create service sector jobs:
    • §  Restrictions on store hours
    • §  Restrictions on self employment
  2. (Essay 4) Attitude problems
    • Geographic immobility- European workers are less likely to move for a new job than US workers
    • §  Language barriers
    • §  Hard to become socially accepted
    • §  Expensive housing
    • §  Lack international connections
    • Anti-Work-Ethic Attitudes
    • §  Refused to take low paying jobs because it would hurt their status
    • §  Preference for leisure
    • §  High unemployment compensation- lowered incentive to find new job
  3. (Essay 4) World Changes
    • Technology change- computerization and automation destroyed low skilled jobs
    • Globalization- companies spread to knew markets for more profit
    • Aging populations- worry about pension crisis
  4. (Essay 4) Europe’s Policy Options
    • Keep the same system but create more jobs through gov action
    • Coverage to the US model, create jobs the way the US does
    • Accelerate unification of Europe