[lbo-talk] "Labor Freedom" and Unemployment Rates

[Yoshie Furuhashi]

Who says the flexible labor market is good for employment?

<http://stats.oecd.org/WBOS/Default.aspx?QueryName=253&QueryType=View>
Unemployment Rate
                     2004  2005  2006
Iceland            3.1     2.6    2.9
Norway           4.5(B) 4.6    3.5
United States  5.5      5.1    4.6

<http://www.heritage.org/research/features/index/country.cfm?id=Iceland>
Labor Freedom  - 69.9%

The labor market operates under relatively flexible employment
regulations that could be improved to enhance employment and
productivity growth. The non-salary cost of employing a worker is
moderate, and dismissing a redundant employee is not difficult.
Regulations on increasing or contracting the number of work hours are
rigid.

<http://www.heritage.org/research/features/index/country.cfm?id=Norway>
Labor Freedom - 51.1%

The labor market operates under restrictive employment regulations
that hinder employment and productivity growth. The non-salary cost of
employing a worker is moderate, but dismissing a redundant employee is
relatively costly. A new Working Environment and Worker Protection
Act, passed in late 2005, mainly maintains the basic principles of a
1977 Act and aims to meet the need for flexibility in employment
contracts and working hour periods.

<http://www.heritage.org/research/features/index/country.cfm?id=UnitedStates>
Labor Freedom - 92.1%

The labor market operates under highly flexible employment regulations
that enhance overall productivity growth. The non-salary cost of
employing a worker is low, and dismissing a redundant employee is
costless.
--
Yoshie