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Decomposition of trends in youth unemployment – the role of job accessions and separations in countries with different employment protection regimes

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  • Anna Baranowska-Rataj

    ()

  • Iga Magda

    ()
    (Institute of Statistics and Demography, Warsaw School of Economics)

Abstract

We examine the drivers of youth unemployment in Poland and Spain, countries where youth have a marginalised labour market position. We decompose the trends in unemployment rates in 1990-2011. We disentangle the role of prolonging job search and the impact of dismissals. The contribution of these two factors to the changes in unemployment rates is compared between youth and the reference group of prime-age workers. We show that in both countries, youth had actually higher chances of finding jobs than the prime-age workers during last two decades. However, the probability of job separation among youth was persistently higher. Moreover, the youth job separation risk reacted to recessions much stronger than the prime-age group risk. In Poland the disparity between the impact of job dismissals on changes in unemployment rates among young and prime-age men is relatively lower than in Spain, which could be ascribed to countries’ differential employment protection regimes.

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Bibliographic Info

Paper provided by Institute of Statistics and Demography, Warsaw School of Economics in its series Working Papers with number 53.

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Length: 25 pages
Date of creation: 2013
Date of revision:
Handle: RePEc:isd:wpaper:53

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Keywords: unemployment; job flows; job separations; segmented labour markets;

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  1. John Haltiwanger & Hartmut Lehmann & Katherine Terrell, 2003. "Job Creation and Job Destruction in Transition Countries," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 11(2), pages 205-219, June.
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  8. Franchi, Massimo & Ordóñez, Javier, 2011. "Multiple equilibria in Spanish unemployment," Structural Change and Economic Dynamics, Elsevier, vol. 22(1), pages 71-80, February.
  9. Pierre Cahuc & André Zylberberg, 2004. "Labor Economics," MIT Press Books, The MIT Press, edition 1, volume 1, number 026203316x, December.
  10. Cuestas, Juan C. & Gil-Alana, Luis A. & Staehr, Karsten, 2011. "A further investigation of unemployment persistence in European transition economies," Journal of Comparative Economics, Elsevier, vol. 39(4), pages 514-532.
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  12. Raul Eamets, 2004. "Labour market flows and adjustment to macroeconomic shocks in the Baltic States," Post-Communist Economies, Taylor & Francis Journals, vol. 16(1), pages 47-71.
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