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The Challenge of Youth Unemployment

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Author Info

  • Niall O'Higgins

    (CELPE & CSEF, Dipartimento di Scienze Economiche e Statistiche, Università di Salerno)

Abstract

This paper presents an overview of the youth unemployment problem and youth employment policy principally from the European perspective although it is hoped that much of the coment and analysis is relevant for a much broader range of countries. Its intention is to raise issues rather than provide a blueprint for policy. In the first part, which considers the nature and caiuses of youth unemployment, it is shown thatbthe basic cause of youth unemployment is insufficient aggregate demand rather than high youth wages or the size of the youth cohort, and suggests that a successful strategy for dealing with this problem must take this into account. In the second section, dealing principally with the examples of the UK and Germany, a number of factors are identified which influence the effectiveness of youth employment policy. IN particular, it is found that precise targetting of programmes and the involvement of employers' and workers' organisations as well as government in the design and implementation of policy are both important determinants of an effective policy.

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File URL: http://128.118.178.162/eps/lab/papers/0507/0507003.pdf
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Bibliographic Info

Paper provided by EconWPA in its series Labor and Demography with number 0507003.

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Length: 77 pages
Date of creation: 06 Jul 2005
Date of revision:
Handle: RePEc:wpa:wuwpla:0507003

Note: Type of Document - pdf; pages: 77. ILO, Employment & Training Papers no. 7, 1997. A briefer version has also been published in the International Review of Social Security, Vol. 50, no. 4, pp. 63-93, 1997.
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Web page: http://128.118.178.162

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Keywords: youth unemployment; youth employment policy;

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References

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  1. Sanders Korenman & David Neumark, 1997. "Cohort Crowding and Youth Labor Markets: A Cross-National Analysis," NBER Working Papers 6031, National Bureau of Economic Research, Inc.
  2. Acemoglu, Daron & Pischke, Jörn-Steffen, 1996. "Why do Firms Train? Theory and Evidence," CEPR Discussion Papers 1460, C.E.P.R. Discussion Papers.
  3. Narendranathan, W. & Elias, P., 1990. "Influences of Past History on the Incidence of Youth Unemployment: Empirical Finding for the U.K," The Warwick Economics Research Paper Series (TWERPS) 369, University of Warwick, Department of Economics.
  4. David Soskice, 1994. "Reconciling Markets and Institutions: The German Apprenticeship System," NBER Chapters, in: Training and the Private Sector, pages 25-60 National Bureau of Economic Research, Inc.
  5. Soest, A.H.O. van, 1994. "Youth minimum wage rates: The Dutch experience," Discussion Paper 1994-22, Tilburg University, Center for Economic Research.
  6. Franz, Wolfgang & Inkmann, Joachim & Pohlmeier, Winfried & Zimmermann, Volker, 1997. "Young and out in Germany: On the youths' chances of labor market entrance in Germany," Discussion Papers 40, University of Konstanz, Center for International Labor Economics (CILE).
  7. Main, Brian G M, 1987. "The Wage Expectations and Unemployment Experience of School Leavers," Scottish Journal of Political Economy, Scottish Economic Society, vol. 34(4), pages 349-67, November.
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  9. Richard Layard, 1982. "Youth Unemployment in Britain and the United States Compared," NBER Chapters, in: The Youth Labor Market Problem: Its Nature, Causes, and Consequences, pages 499-542 National Bureau of Economic Research, Inc.
  10. James Meade., . "Agathotopia," Hume Papers 16, David Hume Institute.
  11. Bell, David & Blanchflower, David, 2010. "Youth Unemployment: Deja Vu?," Stirling Economics Discussion Papers 2010-04, University of Stirling, Division of Economics.
  12. John M. Abowd & Francis Kramarz & Thomas Lemieux & David N. Margolis, 1997. "Minimum Wages and Youth Employment in France and the United States," NBER Working Papers 6111, National Bureau of Economic Research, Inc.
  13. Robert G. Fay, 1996. "Enhancing the Effectiveness of Active Labour Market Policies: Evidence from Programme Evaluations in OECD Countries," OECD Labour Market and Social Policy Occasional Papers 18, OECD Publishing.
  14. Francine D. Blau & Lawrence M. Kahn, 1997. "Gender and Youth Employment Outcomes: The US and West Germany, 1984-91," NBER Working Papers 6078, National Bureau of Economic Research, Inc.
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  16. Nicholas Oulton & Hilary Steedman, 1994. "The British System of Youth Training: A Comparison with Germany," NBER Chapters, in: Training and the Private Sector, pages 61-76 National Bureau of Economic Research, Inc.
  17. Richard Dickens & Stephen Machin & Alan Manning, 1994. "The Effects of Minimum Wages on Employment: Theory and Evidence from Britain," CEP Discussion Papers dp0183, Centre for Economic Performance, LSE.
  18. David G. Blanchflower & Richard B. Freeman, 2000. "Youth Employment and Joblessness in Advanced Countries," NBER Books, National Bureau of Economic Research, Inc, number blan00-1, May.
  19. Peter Dolton & Gerald Makepeace & John Treble, 1994. "Public- and Private-Sector Training of Young People in Britain," NBER Chapters, in: Training and the Private Sector, pages 261-282 National Bureau of Economic Research, Inc.
  20. Rice, Patricia G, 1986. "Juvenile Unemployment, Relative Wages and Social Security in Great Britain," Economic Journal, Royal Economic Society, vol. 96(382), pages 352-74, June.
  21. Ridder, G, 1986. "An Event History Approach to the Evaluation of Training, Recruitment and Employment Programmes," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 1(2), pages 109-26, April.
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Citations

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Cited by:
  1. Wamuthenya, W.R., 2010. "To what extent can disparities in compositional and structural factors account for the gender gap in unemployment in the urban areas of Kenya?," ISS Working Papers - General Series 502, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
  2. O'Higgins, Niall, 2012. "This Time It's Different? Youth Labour Markets During 'The Great Recession'," IZA Discussion Papers 6434, Institute for the Study of Labor (IZA).
  3. Misbah Tanveer Choudhry & Enrico Marelli & Marcello Signorelli, 2012. "Youth unemployment rate and impact of financial crises," International Journal of Manpower, Emerald Group Publishing, vol. 33(1), pages 76-95, June.
  4. Sergio de Nardis & Massimo Mancini & Carmine Pappalardo, 2003. "Regolazione del mercato del lavoro e crescita dimensionale delle imprese: Una verifica sull'effetto soglia dei 15 dipendenti," ISAE Working Papers 38, ISTAT - Italian National Institute of Statistics - (Rome, ITALY).
  5. Niall O’Higgins, 2010. "Youth Labour Markets in Europe and Central Asia," Working Papers id:2740, eSocialSciences.
  6. Olga Demidova & Marcello Signorelli, 2010. "The Impact of Crises on Youth Unemployment of Russian Regions: An Empirical Analysis," Quaderni del Dipartimento di Economia, Finanza e Statistica 78/2010, Università di Perugia, Dipartimento Economia, Finanza e Statistica.
  7. Caruso, Raul & Schneider, Friedrich, 2011. "The socio-economic determinants of terrorism and political violence in Western Europe (1994–2007)," European Journal of Political Economy, Elsevier, vol. 27(S1), pages S37-S49.
  8. L.Guarcello & M. Manacorda & F. Rosati & J. Fares & S.Lyon & C. Valdivia, 2005. "School-to-Work Transitions in Sub-Saharan Africa: An overview," UCW Working Paper 15, Understanding Children's Work (UCW Programme).
  9. Tattara, Giuseppe & Valentini, Marco, 2009. "Can employment subsidies and greater labour market flexibility increase job opportunities for youth? : revisiting the Italian on-the-job training programme," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 42(3), pages 197-212.
  10. Niall O’Higgins, 2004. "Recent Trends in Youth Labour Markets and Youth Employment Policy in Europe and Central Asia," CELPE Discussion Papers 85, CELPE - Centre of Labour Economics and Economic Policy, University of Salerno, Italy.
  11. Quintini, Glenda & Martin, John P. & Martin, Sébastien, 2007. "The Changing Nature of the School-to-Work Transition Process in OECD Countries," IZA Discussion Papers 2582, Institute for the Study of Labor (IZA).
  12. Misbah Tanveer Choudhry & Enrico Marelli & Marcello Signorelli, 2010. "The Impact of Financial Crises on Youth Unemployment Rate," Quaderni del Dipartimento di Economia, Finanza e Statistica 79/2010, Università di Perugia, Dipartimento Economia, Finanza e Statistica.
  13. Cristiano Perugini & Marcello Signorelli, 2010. "Youth labour market performance in European regions," Economic Change and Restructuring, Springer, vol. 43(2), pages 151-185, May.
  14. O'Higgins, Niall, 2001. "Youth unemployment and employment policy: a global perspective," MPRA Paper 23698, University Library of Munich, Germany.
  15. Kolev, Alexandre & Saget, Catherine, 2005. "Towards a better understanding of the nature, causes and consequences of youth labor market disadvantage: evidence for South-East Europe," Social Protection Discussion Papers 32544, The World Bank.
  16. Niall O'Higgins, 2005. "Trends in the Youth Labour Market in Developing and Transition Countries," Labor and Demography 0507002, EconWPA.
  17. Hou, Xiaohui, 2011. "Challenges for youth employment in Pakistan : are they youth-specific ?," Policy Research Working Paper Series 5544, The World Bank.

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