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Youth Unemployment in Europe: Persistence and Macroeconomic Determinants

Author

Listed:
  • Guglielmo Maria Caporale

    (1] Department of Economics and Finance, Brunel University, Uxbridge, London, UB8 3PH, UK.)

  • Luis Gil-alana

    (School of Economics, University of Navarra, Pamplona, Spain.)

Abstract

This paper investigates the statistical features and the macroeconomic determinants of youth unemployment in a number of European countries. First, it explores its short and long memory properties by estimating both autoregressive and fractional integration. This analysis sheds light on the degree of persistence of the series, and on whether policy actions are required for highly persistent series. Second, it investigates the main determinants of youth unemployment in Europe by estimating fractional cointegration models. The evidence suggests that this series is highly persistent in all the countries examined, and that in some of them there is a significant long-run equilibrium relationship linking it to macroeconomic variables such as GDP and inflation.

Suggested Citation

  • Guglielmo Maria Caporale & Luis Gil-alana, 2014. "Youth Unemployment in Europe: Persistence and Macroeconomic Determinants," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 56(4), pages 581-591, December.
    • Handle: RePEc:pal:compes:v:56:y:2014:i:4:p:581-591
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    Cited by:

    1. Mihaela Simionescu & Javier Cifuentes-Faura, 2022. "Forecasting National and Regional Youth Unemployment in Spain Using Google Trends," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 164(3), pages 1187-1216, December.
    2. Iryna Lukianenko & Marianna Oliskevych, 2017. "Evidence of Asymmetries and Nonlinearity of Unemployment and Labour Force Participation Rate in Ukraine," Prague Economic Papers, Prague University of Economics and Business, vol. 2017(5), pages 578-601.
    3. Masserini, Lucio & Bini, Matilde & Zeli, Alessandro & Forciniti, Alessia, 2024. "Measuring the impact of the 2008 and 2011 financial crises and the 2015 recovery on the unemployment rate in Italy," Socio-Economic Planning Sciences, Elsevier, vol. 95(C).
    4. Sonia Joijc, 2017. "Sustainable Tourism in the Albanian Riviera - Cultural Routes Contibution in Sustainable Tourism in the Albanian Riviera," European Journal of Economics and Business Studies Articles, Revistia Research and Publishing, vol. 3, ejes_v3_i.
    5. Maridueña-Larrea, Ángel & Martín-Román, Ángel L., 2025. "Unemployment invariance hypothesis and labor supply: a test for 31 American countries," MPRA Paper 125831, University Library of Munich, Germany.
    6. Mina, Wasseem, 2022. "Female Youth Unemployment in the GCC Countries: A Political Economy Perspective," MPRA Paper 121137, University Library of Munich, Germany.
    7. SÁNTA Ádám Kálmán & KOZMÁNÉ CSIRMAZ Éva, 2020. "Employment-Related Habits Among Students Majoring In Tourism At The University Of Debrecen," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 109-121, July.
    8. Luis René Cáceres, 2021. "Youth Unemployment and Underdevelopment in Honduras," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 13(2), pages 1-61, February.
    9. Riza Bayrak, Halim Tatli, 2018. "The Determinants of Youth Unemployment: A Panel Data Analysis of OECD Countries," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 15(2), pages 231-248, December.
    10. Tamar Pkhakadze, 2022. "Youth unemployment in the European Union and transition period - from education to the labour market," Technium Social Sciences Journal, Technium Science, vol. 35(1), pages 532-540, September.
    11. Juan Carlos Cuestas & Javier Ordóñez & Karsten Staehr, 2019. "Unit labour costs and the dynamics of output and unemployment in the southern European crisis countries," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 46(3), pages 597-616, August.
    12. Tamar Pkhakadze, 2022. "Improving Youth Unemployment Issues and Further Development of Youth Policies in the European Union member states," Technium Social Sciences Journal, Technium Science, vol. 34(1), pages 521-528, August.
    13. Floro Ernesto Caroleo & Elvira Ciociano & Sergio Destefanis, 2017. "Youth Labour-Market Performance, Institutions and Vet Systems: A Cross-Country Analysis," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 3(1), pages 39-69, March.
    14. repec:prg:jnlpep:v:preprint:id:633:p:1-24 is not listed on IDEAS
    15. Giovanni S. F. Bruno & Misbah Choudhry Tanveer & Enrico Marelli & Marcello Signorelli, 2017. "The short- and long-run impacts of financial crises on youth unemployment in OECD countries," Applied Economics, Taylor & Francis Journals, vol. 49(34), pages 3372-3394, July.
    16. Maria Laura Parisi & Enrico Marelli & Olga Demidova, 2015. "Labour Productivity of Young and Adult Temporary Workers and Youth Unemployment: a Cross-country Analysis," Discussion Papers 1_2015, CRISEI, University of Naples "Parthenope", Italy.
    17. Floro Ernesto Caroleo & Elvira Ciociano & Sergio Destefanis, 2017. "The role of the education systems and the labour market institutions in enhancing youth employment: a cross-country analysis," Discussion Papers 1_2017, CRISEI, University of Naples "Parthenope", Italy.
    18. Alexander McTier & Alan McGregor, 2018. "Influence of Work–Welfare Cycling and Labour Market Segmentation on Employment Histories of Young Long-Term Unemployed," Work, Employment & Society, British Sociological Association, vol. 32(1), pages 20-37, February.
    19. Urbánné Mező, Júlia & Udvari, Beáta, 2016. "Munkapiaci rugalmasság és ifjúsági foglalkoztathatóság [Labour-market flexibility and youth employment]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(4), pages 431-460.
    20. Iva Tomic, 2016. "What drives youth unemployment in Europe?," Working Papers 1601, The Institute of Economics, Zagreb.
    21. Wen-Yi Chen & Tsangyao Chang & Yu-Hui Lin, 2018. "Investigating the Persistence of Suicide in the United States: Evidence from the Quantile Unit Root Test," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 135(2), pages 813-833, January.
    22. Iva TOMIĆ, 2018. "What drives youth unemployment in Europe? Economic vs non‐economic determinants," International Labour Review, International Labour Organization, vol. 157(3), pages 379-408, September.

    More about this item

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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