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Youth Unemployment: Aggregate Incidence and Consequences for Individuals

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  • Bruce Chapman
  • Matthew Gray

Abstract

This paper analyses the incidence and impact of unemployment among young Australians. It is argued that the scale and seriousness of the current youth problem are often overstated. There is no evidence that the aggregate unemployment experience of young Australians has changed over the last two decades. The groups of young people most at risk of unemployment are identified. While the overall scale of the problem is not worsening, some of the young unemployed face adverse future labour market outcomes. It is argued that while there is a role for specific policies targeted on young people, these need to be accompanied by policies that involve managing aggregate demand.

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Bibliographic Info

Paper provided by Centre for Economic Policy Research, Research School of Economics, Australian National University in its series CEPR Discussion Papers with number 459.

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Length: 27 pages
Date of creation: Dec 2002
Date of revision:
Handle: RePEc:auu:dpaper:459

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  1. Matthew Gray, 2000. "The Effects of Unemployment on the Earnings of Young Australians," CEPR Discussion Papers 419, Centre for Economic Policy Research, Research School of Economics, Australian National University.
  2. Miller, Paul W, 1983. "The Determinants of School Participation Rates: A Cross-Sectional Analysis for New South Wales and Victoria," The Economic Record, The Economic Society of Australia, vol. 59(164), pages 43-56, March.
  3. Gregory, M. & Jukes, R., 1997. "The Effects of Unemployment on Subsequent Earnings: A Study of British Men 1984-94," Papers 21, Centre for Economic Performance & Institute of Economics.
  4. Heckman, James J. & Singer, Burton, 1984. "Econometric duration analysis," Journal of Econometrics, Elsevier, vol. 24(1-2), pages 63-132.
  5. Nickell, Stephen & Narendranathan, Wiji & Stern, Jon & Garcia, Jaime, 1989. "The Nature of Unemployment in Britain: Studies of the DHSS Cohort," OUP Catalogue, Oxford University Press, number 9780198285489, September.
  6. Trivedi, P K & Alexander, J N, 1989. "Reemployment Probability and Multiple Unemployment Spells: A Partial-Likelihood Approach," Journal of Business & Economic Statistics, American Statistical Association, vol. 7(3), pages 395-401, July.
  7. Stephen Knights & Mark Harris & Joanne Loundes, 2000. "Dynamic Relationships in the Australian Labour Market: Heterogeneity and State Dependence," Melbourne Institute Working Paper Series wp2000n06, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  8. Rosella Gardecki & David Neumark, 1997. "Order from Chaos? The Effects of Early Labor Market Experiences on Adult Labor Market Outcomes," NBER Working Papers 5899, National Bureau of Economic Research, Inc.
  9. Holzer, Harry J, 1988. "Search Method Use by Unemployed Youth," Journal of Labor Economics, University of Chicago Press, vol. 6(1), pages 1-20, January.
  10. Gaston, Noel & Timcke, David, 1999. "Do Casual Workers Find Permanent Full-Time Employment? Evidence from the Australian Youth Survey," The Economic Record, The Economic Society of Australia, vol. 75(231), pages 333-47, December.
  11. Ruhm, Christopher J, 1997. "Is High School Employment Consumption or Investment?," Journal of Labor Economics, University of Chicago Press, vol. 15(4), pages 735-76, October.
  12. Hardin, A & Kapuscinski, C, 1997. "Young Australians in Unemployment : Despair by any Other Name," CEPR Discussion Papers 359, Centre for Economic Policy Research, Research School of Economics, Australian National University.
  13. Jones, Stephen R G, 1989. "Job Research Methods, Intensity and Effects," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 51(3), pages 277-96, August.
  14. Ackum, Susanne, 1991. " Youth Unemployment, Labor Market Programs and Subsequent Earnings," Scandinavian Journal of Economics, Wiley Blackwell, vol. 93(4), pages 531-43.
  15. Harris, Mark N, 1996. "Modelling the Probability of Youth Unemployment in Australia," The Economic Record, The Economic Society of Australia, vol. 72(217), pages 118-29, June.
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