The US Labor Market is not Working

Via Antonio Fatas, an analysis of US labor participation vs. the rest of the OECD economies.

Read the whole thing, but this is the key chart:

His comment:

What is interesting is that most of the countries of the top of the list are countries with a large welfare state and very high taxes (including on labor). So the negative correlation between the welfare state and taxes and the ability to motivate people to work (and create jobs) that some bring back all the time does not seem to be present in the data.

I’m particularly amused by the phrase “does not seem to be present in the data”. I plan to use that in the future.

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