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Why Have Labour Market Outcomes of Youth in Advanced Economies Deteriorated?

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  • Christopoulou Rebekka

    (Department of Human Sciences, The Ohio State University, 1787 Neil Avenue 235C Campbell Hall, Columbus, OH 43210, USA)

Abstract

Youth labour outcomes in comparison to those of prime-age adults have worsened across the OECD since the mid-1970s. English-speaking countries experienced mostly declines in relative pay; continental European countries experienced mostly declines in relative employment. This paper aims to explain these developments by estimating a system of simultaneous equations on a panel of 10 advanced economies. The results suggest that the deterioration in the youth labour market has been due to inward shifts in relative demand, offset only partially by reductions in relative supply. The heterogeneity in the deterioration across countries was caused partly by differential rates of relative pay adjustment, depending on each country’s mix of labour market institutions and the priority attached by social partners to youth employment.

Suggested Citation

  • Christopoulou Rebekka, 2013. "Why Have Labour Market Outcomes of Youth in Advanced Economies Deteriorated?," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 13(1), pages 203-238, May.
    • Handle: RePEc:bpj:bejeap:v:13:y:2013:i:1:p:203-238:n:2
    DOI: 10.1515/bejeap-2012-0002
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    References listed on IDEAS

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    Cited by:

    1. Christopoulou, Rebekka & Pantalidou, Maria, 2017. "The parental home as labor market insurance for young Greeks during the crisis," GLO Discussion Paper Series 158, Global Labor Organization (GLO).
    2. Christopoulou, Rebekka & Pantalidou, Maria, 2018. "Who saved Greek youth? Parental support to young adults during the great recession," LSE Research Online Documents on Economics 91954, London School of Economics and Political Science, LSE Library.
    3. Christopoulou, Rebekka & Pantalidou, Maria, 2022. "The parental home as labor market insurance for young Greeks during the Great Recession," Journal of Demographic Economics, Cambridge University Press, vol. 88(3), pages 313-350, September.

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