Americans average 25.1 working (1) ________ per person in working age per week, but the Germans average 18.6 hours. The average American works 46.2 weeks per year, (2) ________ the French average 40 weeks per year. Why do western Europeans work so much (3) ________than Americans? Recent work argues that these differences result (4)________higher European tax rates, but the vast empirical labor supply literature suggests that tax rates can (5)________ only a small amount of the differences in hours between the U.S. and Europe. Another popular view is that these differences are explained (6) ________long-standing European “culture,” yet Europeans worked more than Americans as (7)________ as the 1960s. We believe that European labor market regulations, advocated by unions in declining European industries who argued “work less, work all” explain the bulk of the (8) ________ between the U.S. and Europe. These policies do not seem to have increased employment, but they may have had a more society-wide (9) ________ on leisure patterns because of a social multiplier where the returns to leisure increase as more people are (10)________ longer vacations.