The effect of labor market institutions and policies on the evolving pattern of unemployment in almost all countries globally has always been an important issue in economic history. The labor market characteristics and the unemployment rates between Europe and the USA, as well as among the European countries, are different. Many economists, such as Blanchard and Wolfers, suggest that these differences in unemployment across countries can be attributed to differences in labor market institutions and labor market regulations, which are designed to form the appropriate labor market policy.