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Youth Unemployment in Old Europe: The Polar Cases of France and Germany

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Author Info

  • Cahuc, Pierre

    ()
    (Ecole Polytechnique, Paris)

  • Carcillo, Stéphane

    ()
    (OECD)

  • Rinne, Ulf

    ()
    (IZA)

  • Zimmermann, Klaus F.

    ()
    (IZA and University of Bonn)

Abstract

France and Germany are two polar cases in the European debate about rising youth unemployment. Similar to what can be observed in Southern European countries, a "lost generation" may arise in France. In stark contrast, youth unemployment has been on continuous decline in Germany for many years, hardly affected by the Great Recession. This paper analyzes the diametrically opposed developments in the two countries to derive policy lessons. As the fundamental differences in youth unemployment are primarily resulting from structural differences in labor policy and in the (vocational) education system, any short-term oriented policies can only have temporary effects. Ultimately, the youth unemployment disease in France and in other European countries has to be cured with structural reforms.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7490.

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Length: 32 pages
Date of creation: Jul 2013
Date of revision:
Handle: RePEc:iza:izadps:dp7490

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Related research

Keywords: labor policy; demographic trends; minimum wages; youth unemployment; Great Recession; employment protection; labor market institutions; vocational education and training;

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References

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  1. Clark, Damon & RenÈ Fahr, 2002. "The Promise of Workplace Training for Non-College-Bound Youth: Theory and Evidence from German Apprenticeship," Royal Economic Society Annual Conference 2002 52, Royal Economic Society.
  2. Rainer Winkelmann, 1997. "How young workers get their training: A survey of Germany versus the United States," Journal of Population Economics, Springer, vol. 10(2), pages 159-170.
  3. Schmillen, Achim & Umkehrer, Matthias, 2013. "The scars of youth : effects of early-career unemployment on future unemployment experience," IAB Discussion Paper 201306, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  4. Konstantinos Tatsiramos, 2009. "Geographic labour mobility and unemployment insurance in Europe," Journal of Population Economics, Springer, vol. 22(2), pages 267-283, April.
  5. Card, David & Kluve, Jochen & Weber, Andrea, 2009. "Active Labor Market Policy Evaluations: A Meta-Analysis," IZA Discussion Papers 4002, Institute for the Study of Labor (IZA).
  6. David Neumark & William L. Wascher, 2008. "Minimum Wages," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262141027, December.
  7. Gurgand, Marc & Margolis, David N., 2008. "Does work pay in France? Monetary incentives, hours constraints, and the guaranteed minimum income," Journal of Public Economics, Elsevier, vol. 92(7), pages 1669-1697, July.
  8. Kramarz, Francis & Philippon, Thomas, 2000. "The Impact of Differential Payroll Tax Subsidies on Minimum Wage Employment," IZA Discussion Papers 219, Institute for the Study of Labor (IZA).
  9. Eichhorst, Werner & Hinte, Holger & Rinne, Ulf, 2013. "Youth Unemployment in Europe: What to Do about It?," IZA Policy Papers 65, Institute for the Study of Labor (IZA).
  10. Lerman, Robert I., 2012. "Can the United States Expand Apprenticeship? Lessons from Experience," IZA Policy Papers 46, Institute for the Study of Labor (IZA).
  11. Eichhorst, Werner & Rodríguez-Planas, Núria & Schmidl, Ricarda & Zimmermann, Klaus F., 2012. "A Roadmap to Vocational Education and Training Systems Around the World," IZA Discussion Papers 7110, Institute for the Study of Labor (IZA).
  12. Alet, Elodie & Bonnal, Liliane, 2011. "Vocational schooling and educational success: comparing apprenticeship to full-time vocational high-school," TSE Working Papers 27239, Toulouse School of Economics (TSE).
  13. Olivier Bargain & Karina Doorley, 2014. "Putting Structure on the RD Design: Social Transfers and Youth Inactivity in France," AMSE Working Papers 1406, Aix-Marseille School of Economics, Marseille, France, revised 23 Feb 2014.
  14. Cahuc, Pierre & Carcillo, Stéphane & Zimmermann, Klaus F., 2013. "The Employment of the Low-Skilled Youth in France," IZA Policy Papers 64, Institute for the Study of Labor (IZA).
  15. Zimmermann, Klaus F. & Biavaschi, Costanza & Eichhorst, Werner & Giulietti, Corrado & Kendzia, Michael J. & Muravyev, Alexander & Pieters, Janneke & Rodríguez-Planas, Núria & Schmidl, Ricarda, 2013. "Youth Unemployment and Vocational Training," Foundations and Trends(R) in Microeconomics, now publishers, vol. 9(1–2), pages 1-157, December.
    • Biavaschi, Costanza & Eichhorst, Werner & Giulietti, Corrado & Kendzia, Michael J. & Muravyev, Alexander & Pieters, Janneke & Rodríguez-Planas, Núria & Schmidl, Ricarda & Zimmermann, Klaus F., 2012. "Youth Unemployment and Vocational Training," IZA Discussion Papers 6890, Institute for the Study of Labor (IZA).
  16. Rinne, Ulf & Zimmermann, Klaus F., 2011. "Another Economic Miracle? The German Labor Market and the Great Recession," IZA Discussion Papers 6250, Institute for the Study of Labor (IZA).
  17. Caliendo, Marco & Künn, Steffen & Schmidl, Ricarda, 2011. "Fighting Youth Unemployment: The Effects of Active Labor Market Policies," IZA Discussion Papers 6222, Institute for the Study of Labor (IZA).
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Citations

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Cited by:
  1. Jo Ritzen & Klaus Zimmermann, 2014. "A vibrant European labor market with full employment," IZA Journal of European Labor Studies, Springer, vol. 3(1), pages 1-24, December.
  2. Eichhorst, Werner & Neder, Franziska, 2014. "Youth Unemployment in Mediterranean Countries," IZA Policy Papers 80, Institute for the Study of Labor (IZA).
  3. Arni, Patrick & Eichhorst, Werner & Pestel, Nico & Spermann, Alexander & Zimmermann, Klaus F., 2014. "Kein Mindestlohn ohne unabhängige wissenschaftliche Evaluation," IZA Standpunkte 65, Institute for the Study of Labor (IZA).
  4. Povilas Lastauskas & Eirini Tatsi, 2013. "Spatial Nexus in Crime and unemployment in Times of crisis: Evidence from Germany," Cambridge Working Papers in Economics 1359, Faculty of Economics, University of Cambridge.
  5. Arni, Patrick & Eichhorst, Werner & Spermann, Alexander & Zimmermann, Klaus F., 2014. "Mindestlohnevaluation jetzt und nicht erst 2020," IZA Standpunkte 70, Institute for the Study of Labor (IZA).
  6. Zimmermann, Klaus F., 2013. "Labor Market Reforms and the Great Recession," IZA Policy Papers 75, Institute for the Study of Labor (IZA).

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