Labour market rigidities discourage the effective reallocation of labour. For example, it has been argued that American workers tend to invest more in general human capital, while European workers favour specific human capital investments. This may be partly linked to the fact that workers in the US have little unemployment protection and low unemployment benefits.
Nils Bernstein: Developments in the Danish economy and mortgagecredit system Speech by Mr Nils Bernstein, Governor of the National Bank of Denmark, at the Annual Meeting of the Danish Mortgage Banks’ Federation, Copenhagen, 29 March 2012. *  *  *  Thank you for inviting me to speak here today.