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Employers in most European countries have to pay for healthcare, pension, unemployment, taxes. In US some employers do also pay for those, but in Europe it can
by llsf 6y ago
Employers in most European countries have to pay for healthcare, pension, unemployment, taxes. In US some employers do also pay for those, but in Europe it can represent a much bigger part.
When an American is paid 41% higher than Frenchmen, much (if not more) of those 41% are actually paid by the employer). The frenchman would have healthcare included, pension at 65yo, better unemployment protection, virtually free education for his children, etc.
From an employer's perspective, labor is more expensive in Europe than in US (even the minimum wage is higher in most Europe).
Not saying one solution is better than the other. Just comparing different approaches.