IDEAS home Printed from https://ideas.repec.org/p/crj/dpaper/2_2015.html
   My bibliography  Save this paper

The determinants of youth unemployment. A panel data analysis

Author

Listed:
  • Francesco Pastore
  • Luca Giuliani

Abstract

The school-to-work transition represents a long dark tunnel for too many young people all over the world. Nonetheless, cross-country differences are striking: in Germany, young people fare no worse than their adult counterparts, while in the South- and Eastern-European Union countries young people fare from 3 to 4 times worse than their adult counterparts. This essay points to the youth experience gap as a key concept: countries dramatically differ in their strategies to cover the youth experience gap, which remains high even in a time of ever increasing education attainment. Five different country groups are detected whose outcomes in terms of youth unemployment are dramatically different: a) the North-European; b) the Continental European; c) the Anglo-Saxon; d) the South-European; e) the New Member States. For the first time, this essay provides evidence based on panel data analysis. Our final specification is a dynamic model with control for endogenous variables to explain the role that different educational systems vis-à-vis labor market institutions have in affecting the youth absolute and relative disadvantage. We find that the European Continental and the Anglo-Saxon system perform much better also after controlling for per capita GDP level and growth, as well as for labor market and educational institutions.

Suggested Citation

  • Francesco Pastore & Luca Giuliani, 2015. "The determinants of youth unemployment. A panel data analysis," Discussion Papers 2_2015, CRISEI, University of Naples "Parthenope", Italy.
  • Handle: RePEc:crj:dpaper:2_2015
    as

    Download full text from publisher

    File URL: http://www.crisei.uniparthenope.it/wp/materiale/2_pastore-giuliani.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Blanchflower, David G. & Freeman, Richard B. (ed.), 2000. "Youth Employment and Joblessness in Advanced Countries," National Bureau of Economic Research Books, University of Chicago Press, number 9780226056586, March.
    2. 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, Juni.
    3. 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 of Labor Economics (IZA).
    4. David Roodman, 2009. "How to do xtabond2: An introduction to difference and system GMM in Stata," Stata Journal, StataCorp LP, vol. 9(1), pages 86-136, March.
    5. Gómez-Salvador, Ramón & Leiner-Killinger, Nadine, 2008. "An analysis of youth unemployment in the euro area," Occasional Paper Series 89, European Central Bank.
    6. Enrico Marelli & Roberto Patuelli & Marcello Signorelli, 2012. "Regional unemployment in the EU before and after the global crisis," Post-Communist Economies, Taylor & Francis Journals, vol. 24(2), pages 155-175, January.
    7. Francesco Pastore, 2009. "School-to-Work Transitions in Mongolia," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 6(2), pages 245-264, December.
    8. Hausman, Jerry, 2015. "Specification tests in econometrics," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 38(2), pages 112-134.
    9. David Roodman, 2009. "A Note on the Theme of Too Many Instruments," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 71(1), pages 135-158, February.
    10. Eng Seng Loh, 1994. "Employment Probation as a Sorting Mechanism," ILR Review, Cornell University, ILR School, vol. 47(3), pages 471-486, April.
    11. Stephen Nickell & Luca Nunziata & Wolfgang Ochel, 2005. "Unemployment in the OECD Since the 1960s. What Do We Know?," Economic Journal, Royal Economic Society, vol. 115(500), pages 1-27, January.
    12. Joachim Vogel, 2002. "European Welfare regimes and the transition to adulthood: A comparative and longitudinal perspective," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 59(3), pages 275-299, September.
    13. Andrea Bassanini & Luca Nunziata & Danielle Venn, 2009. "Job protection legislation and productivity growth in OECD countries," Economic Policy, CEPR;CES;MSH, vol. 24, pages 349-402, April.
    14. Paul Ryan, 2001. "The School-to-Work Transition: A Cross-National Perspective," Journal of Economic Literature, American Economic Association, vol. 39(1), pages 34-92, March.
    15. O'Higgins, Niall, 2001. "Youth unemployment and employment policy: a global perspective," MPRA Paper 23698, University Library of Munich, Germany.
    16. Heckman, James J & Borjas, George J, 1980. "Does Unemployment Cause Future Unemployment? Definitions, Questions and Answers from a Continuous Time Model of Heterogeneity and State Dependence," Economica, London School of Economics and Political Science, vol. 47(187), pages 247-283, August.
    17. Stephen Nickell, 1997. "Unemployment and Labor Market Rigidities: Europe versus North America," Journal of Economic Perspectives, American Economic Association, vol. 11(3), pages 55-74, Summer.
    18. Paul Ryan, 2001. "The School-to-Work Transition: A Cross-National Perspective: Corrigendum," Journal of Economic Literature, American Economic Association, vol. 39(3), pages 767-767, September.
    19. Giovanni S F Bruno & Enrico Marelli & Marcello Signorelli, 2014. "The Rise of NEET and Youth Unemployment in EU Regions after the Crisis," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 56(4), pages 592-615, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Iulian CONDRATOV, 2016. "Research Concerning The Effects Of The Public Policies On The Unemployment Among The Young People In The North-East Region Of Romania," EcoForum, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration - Economy, Business Administration and Tourism Department., vol. 5(2), pages 1-46, July.
    2. Francesco Pastore, 2015. "The European Youth Guarantee: labor market context, conditions and opportunities in Italy," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-22, December.
    3. MURSA Gabriel Claudiu & IACOBUȚĂ Andreea-Oana & ZANET Maria, 2018. "An Eu Level Analysis Of Several Youth Unemployment Related Factors," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 13(3), pages 105-117, December.
    4. Marco Manacorda & Furio Camillo Rosati & Marco Ranzani & Giuseppe Dachille, 2017. "Pathways from school to work in the developing world," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 6(1), pages 1-40, December.
    5. Iulian CONDRATOV, 2016. "Analysis Regarding The Influence Of The Economic Environment On The Unemployment Variety Among The Young People In The North-East Region Of Romania," EcoForum, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration - Economy, Business Administration and Tourism Department., vol. 5(1), pages 1-49, January.
    6. Mert TOPCU & Lütfi BİÇİMVEREN, 2020. "Regional Youth Unemployment in Turkey: Do Determinants Vary by Gender?," Journal of Economic Policy Researches, Istanbul University, Faculty of Economics, vol. 7(2), pages 51-67, July.
    7. Despina Tumanoska, 2019. "The Validity of Okun¡¯s Law in North Macedonia," Business and Economic Research, Macrothink Institute, vol. 9(2), pages 160-168, June.
    8. Iulian CONDRATOV, 2016. "Study Concerning The Correlation Between The Education System Performances And The Unemployment Among The Young People In The North-East Region Of Romania," EcoForum, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration - Economy, Business Administration and Tourism Department., vol. 5(Special I), pages 1-26, august.
    9. Joan Miquel Verd & Oriol Barranco & Mireia Bolíbar, 2019. "Youth unemployment and employment trajectories in Spain during the Great Recession: what are the determinants?," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 53(1), pages 1-20, December.

    More about this item

    Keywords

    Youth Unemployment; Youth Experience Gap; School-to-Work Transition Regimes; Dynamic Panel Data Analysis; System GMM.;

    JEL classification:

    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I2 - Health, Education, and Welfare - - Education
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:crj:dpaper:2_2015. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Margherita Gallo). General contact details of provider: http://edirc.repec.org/data/crnavit.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.