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Youth Unemployment: Key Determinants and the Impact of Crises

In: Disadvantaged Workers

Author

Listed:
  • G. S. F. Bruno

    (Bocconi University)

  • M. T. Choudhry

    (Lahore University of Management Sciences)

  • E. Marelli

    (University of Brescia)

  • M. Signorelli

    (Università di Perugia)

Abstract

This chapter discusses the impact of various factors on the youth unemployment rate (YUR) with respect to the total unemployment rate. In particular, we use different fixed effect panel models to estimate the role played by macroeconomic and structural conditions (e.g. GDP growth rate, inflation, real interest rate, demographic variables, education), financial crises, institutions and policies (e.g. labour market reforms, ALMPs, overall economic freedom). The econometric analysis is based on a panel of OECD countries for the period 1981–2009. Our empirical analysis confirms the expected role of macroeconomic and structural conditions; it shows the additional effect of financial crises; and it underlines the key importance of various institutions and policies. Most importantly, our results prove the differing magnitudes of the impacts of the above-mentioned factors on youth unemployment with respect to the total unemployment rate. These results have major policy implications also in consideration of the still rising level of youth unemployment, especially in Europe.

Suggested Citation

  • G. S. F. Bruno & M. T. Choudhry & E. Marelli & M. Signorelli, 2014. "Youth Unemployment: Key Determinants and the Impact of Crises," AIEL Series in Labour Economics, in: Miguel Ángel Malo & Dario Sciulli (ed.), Disadvantaged Workers, edition 127, chapter 0, pages 121-148, Springer.
    • Handle: RePEc:spr:aiechp:978-3-319-04376-0_7
    DOI: 10.1007/978-3-319-04376-0_7
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    2. Acedański, Jan, 2016. "Youth unemployment and welfare gains from eliminating business cycles — The case of Poland," Economic Modelling, Elsevier, vol. 57(C), pages 248-262.
    3. Signorelli, Marcello & Choudhry, Misbah Tanveer, 2015. "Symposium: Youth labour market and the “Great Recession”," Economic Systems, Elsevier, vol. 39(1), pages 1-2.
    4. Alberta Maria Carlotta Spreafico & Agnese Dina Peruzzi & Enrica Chiappero, 2014. "Youth unemployment in the EU15: regional and national inequalities throughout the 2008 economic crisis," Economics and Business Letters, Oviedo University Press, vol. 3(3), pages 177-190.
    5. 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.

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