Center for Economic and Policy Research Briefing Paper. Washington, DC: CEPR.
http://www.cepr.net/publications/social_exclusion_2006_08.pdf
Sustained, high levels of unemployment in the majority of Europe's largest economies have led
many Europeans to look to the United States as a possible alternative economic model. The political
right and center in Europe have emphasized what they see as the flexibility and dynamism of the
U.S. economy. Much of the left, meanwhile, have argued that high unemployment in Europe, which
is often concentrated in specific geographic regions or demographic groups, is the driving force
behind "social exclusion" in Europe today. This has led many Europeans even some in the
continents social democratic parties to the reluctant conclusion that the United States may be a
good model for reducing social exclusion there.
This paper reviews several international indicators of social exclusion to assess how well the United
States has done in using its apparently greater flexibility and dynamism to reduce social exclusion.
On most measures of inequality, poverty, health, education, crime, and punishment, the United
States does not fare well compared to the much-better-funded welfare states in Europe. The gap
between U.S. and European performance in many of these dimensions is striking, and not fully
acknowledged in the current debate around promoting U.S.-style reforms in Europe. What is more
surprising, however, is that the United States, in fact, performs poorly in two areas where U.S.
superiority is usually simply taken for granted: incorporating traditionally disadvantaged groups into
the paid labor force and providing opportunities for economic mobility.
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