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Youth Unemployment in the OECD: The Role of Institutions

Listed author(s):
  • Sachs Andreas

    ()

    (Prognos AG, Europäisches Zentrum für Wirtschaftsforschung und Strategieberatung, Nymphenburger Str. 14/2. OG, 80335 München, Germany)

  • Smolny Werner

    ()

    (University of Ulm, 89081 Ulm, Germany)

This paper analyzes the role of labor market institutions for youth unemployment, as contrasted to total unemployment. The empirical results are basically consistent with an insider view of labor market institutions. Labor market institutions tend to protect (older) employees but might harm (young) entrants. Remarkable is especially the significant and very high effect of employment protection for regular jobs on youth unemployment. In addition, the combined effects of powerful unions and a coordinated wage bargaining system are beneficial for older people and detrimental to youth. Finally, the paper identifies a significant link between a demographic as well as an educational factor and both youth and total unemployment.

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Article provided by De Gruyter in its journal Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik).

Volume (Year): 235 (2015)
Issue (Month): 4-5 (August)
Pages: 403-417

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Handle: RePEc:jns:jbstat:v:235:y:2015:i:4-5:p:403-417
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