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The determinants of youth unemployment. A panel data analysis

Author

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  • Francesco Pastore
  • Luca Giuliani

Abstract

The school-to-work transition represents a long dark tunnel for too many young people all over the world. Nonetheless, cross-country differences are striking: in Germany, young people fare no worse than their adult counterparts, while in the South- and Eastern-European Union countries young people fare from 3 to 4 times worse than their adult counterparts. This essay points to the youth experience gap as a key concept: countries dramatically differ in their strategies to cover the youth experience gap, which remains high even in a time of ever increasing education attainment. Five different country groups are detected whose outcomes in terms of youth unemployment are dramatically different: a) the North-European; b) the Continental European; c) the Anglo-Saxon; d) the South-European; e) the New Member States. For the first time, this essay provides evidence based on panel data analysis. Our final specification is a dynamic model with control for endogenous variables to explain the role that different educational systems vis-à-vis labor market institutions have in affecting the youth absolute and relative disadvantage. We find that the European Continental and the Anglo-Saxon system perform much better also after controlling for per capita GDP level and growth, as well as for labor market and educational institutions.

Suggested Citation

  • Francesco Pastore & Luca Giuliani, 2015. "The determinants of youth unemployment. A panel data analysis," Discussion Papers 2_2015, CRISEI, University of Naples "Parthenope", Italy.
    • Handle: RePEc:crj:dpaper:2_2015
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    References listed on IDEAS

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    Cited by:

    1. Iulian CONDRATOV, 2016. "Research Concerning The Effects Of The Public Policies On The Unemployment Among The Young People In The North-East Region Of Romania," EcoForum, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration - Economy, Business Administration and Tourism Department., vol. 5(2), pages 1-46, July.
    2. MURSA Gabriel Claudiu & IACOBUȚĂ Andreea-Oana & ZANET Maria, 2018. "An Eu Level Analysis Of Several Youth Unemployment Related Factors," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 13(3), pages 105-117, December.
    3. Marco Manacorda & Furio Camillo Rosati & Marco Ranzani & Giuseppe Dachille, 2017. "Pathways from school to work in the developing world," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 6(1), pages 1-40, December.
    4. Iulian CONDRATOV, 2016. "Analysis Regarding The Influence Of The Economic Environment On The Unemployment Variety Among The Young People In The North-East Region Of Romania," EcoForum, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration - Economy, Business Administration and Tourism Department., vol. 5(1), pages 1-49, January.
    5. Doruk, Ömer Tuğsal & Pastore, Francesco, 2020. "School to Work Transition and Macroeconomic Conditions in the Turkish Economy," IZA Discussion Papers 13921, Institute of Labor Economics (IZA).
    6. Mert TOPCU & Lütfi BİÇİMVEREN, 2020. "Regional Youth Unemployment in Turkey: Do Determinants Vary by Gender?," Journal of Economic Policy Researches, Istanbul University, Faculty of Economics, vol. 7(2), pages 51-67, July.
    7. Iulian CONDRATOV, 2016. "Study Concerning The Correlation Between The Education System Performances And The Unemployment Among The Young People In The North-East Region Of Romania," EcoForum, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration - Economy, Business Administration and Tourism Department., vol. 5(Special I), pages 1-26, august.
    8. Francesco Pastore, 2015. "The European Youth Guarantee: labor market context, conditions and opportunities in Italy," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-22, December.
    9. Despina Tumanoska, 2019. "The Validity of Okun¡¯s Law in North Macedonia," Business and Economic Research, Macrothink Institute, vol. 9(2), pages 160-168, June.
    10. Joan Miquel Verd & Oriol Barranco & Mireia Bolíbar, 2019. "Youth unemployment and employment trajectories in Spain during the Great Recession: what are the determinants?," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 53(1), pages 1-20, December.

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    More about this item

    Keywords

    Youth Unemployment; Youth Experience Gap; School-to-Work Transition Regimes; Dynamic Panel Data Analysis; System GMM.;
    All these keywords.

    JEL classification:

    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I2 - Health, Education, and Welfare - - Education
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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