If you shoot jpg, you're essentially leaving all the processing decisions to the camera. Sometimes that's fine, but often you want a result different from what the camera considers to be ideal. A RAW file contains either 12 or 14 bits per pixel of brightness information. In order to shrink that down to 8 bits for jpg, you have to throw away about 98% of the information you've captured, and you therefore have a lot of choices regarding which data will be useful to you. As a result, you have much more editing headroom, meaning you're able to modify the image (sharpening, noise reduction, color adjustments, exposure adjustments, etc..) without running out of data. If you shoot jpg, the camera cuts the data down for you, and then there's not all that much you can do with the image afterwards.