The article explains why some countries have lower unemployment rates than others. The researchers studied employment in France, Germany, Italy, Spain, Japan, and the United States from 1980 to the early 1990s. They found that Japan and the United States have lower unemployment because they created more jobs in their economies, while European countries lost jobs. Product market restrictions were as important as workforce rigidity in explaining why job creation in Europe lagged behind the United States, especially in high-growth service industries. The United States created more high-skill jobs than Germany and France.