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Transitions In and Out of Unemployment Among Young People in the Irish Recession


  • Kelly, Elish
  • McGuinness, Seamus
  • O'Connell, Philip J.
  • Haugh, David
  • Pandiella, Alberto González


Young people have been hit hard by unemployment during the Irish recession. While much research has been undertaken to study the effects of the recession on overall labour market dynamics, little is known about the specific effects on youth unemployment and the associated challenges. This paper attempts to fill this gap by comparing the profile of transitions to work before the recession (2006) and as the economy emerged from the recession (2011). The results indicate that the rate of transition of the youth from unemployment to employment fell dramatically. The fall is not due to changes in the composition or the characteristics of the unemployed group but to changes in the external environment. These changes imply that the impact of certain individual characteristics changed over the course of the recession. In particular, for youth, education and nationality have become more important for finding a job in Ireland.

Suggested Citation

  • Kelly, Elish & McGuinness, Seamus & O'Connell, Philip J. & Haugh, David & Pandiella, Alberto González, 2013. "Transitions In and Out of Unemployment Among Young People in the Irish Recession," Papers WP466, Economic and Social Research Institute (ESRI).
  • Handle: RePEc:esr:wpaper:w466

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    References listed on IDEAS

    1. Gomes, Pedro, 2012. "Labour market flows: Facts from the United Kingdom," Labour Economics, Elsevier, vol. 19(2), pages 165-175.
    2. Henry S. Farber & Robert G. Valletta, 2015. "Do Extended Unemployment Benefits Lengthen Unemployment Spells?: Evidence from Recent Cycles in the U.S. Labor Market," Journal of Human Resources, University of Wisconsin Press, vol. 50(4), pages 873-909.
    3. repec:zbw:rwirep:0305 is not listed on IDEAS
    4. Duffy, David & Durkan, Joe & Timoney, Kevin & Casey, Eddie, 2013. "Quarterly Economic Commentary, Winter 2012," Forecasting Report, Economic and Social Research Institute (ESRI), number QEC20124.
    5. Ronald Bachmann & Mathias Sinning, 2016. "Decomposing the Ins and Outs of Cyclical Unemployment," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 78(6), pages 853-876, December.
    6. Helen Russell & Philip J. O’Connell, 2004. "Women Returning to Employment, Education and Training in Ireland - An Analysis of Transitions," The Economic and Social Review, Economic and Social Studies, vol. 35(1), pages 1-25.
    7. Durkan, Joe & Duffy, David & O'Sullivan, Cormac, 2011. "Quarterly Economic Commentary, Summer 2011," Forecasting Report, Economic and Social Research Institute (ESRI), number QEC20112.
    8. Juan J. Dolado & Marcel Jansen & Florentino Felgueroso & Andrés Fuentes & Anita Wölfl, 2013. "Youth Labour Market Performance in Spain and its Determinants: A Micro-Level Perspective," OECD Economics Department Working Papers 1039, OECD Publishing.
    9. Daniel Aaronson & Bhashkar Mazumder & Shani Schechter, 2010. "What is behind the rise in long-term unemployment?," Economic Perspectives, Federal Reserve Bank of Chicago, issue Q II, pages 28-51.
    10. Helen Russell & Philip J. O'Connell, 2001. "Getting a Job in Europe: The Transition from Unemployment to Work among Young People in Nine European Countries," Work, Employment & Society, British Sociological Association, vol. 15(1), pages 1-24, March.
    11. Verick, Sher, 2011. "Giving Up Job Search During a Recession: The Impact of the Global Financial Crisis on the South African Labour Market," IZA Discussion Papers 6116, Institute for the Study of Labor (IZA).
    12. Kelly, Elish & McGuinness, Seamus & O'Connell, Philip J., 2011. "Transitions to Long-Term Unemployment Risk Among Young People: Evidence from Ireland," Papers WP394, Economic and Social Research Institute (ESRI).
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    Cited by:

    1. Kelly, Elish & Barrett, Alan, 2017. "Recent Developments in the Irish Labour Market: Is It All Good News?," IZA Discussion Papers 10541, Institute for the Study of Labor (IZA).
    2. Enrico Marelli & Elena S. Vakulenko, 2014. "Youth Unemployment In Italy And Russia: Aggregate Trends And The Role Of Individual Determinants," HSE Working papers WP BRP 74/EC/2014, National Research University Higher School of Economics.
    3. repec:esr:resser:rs58 is not listed on IDEAS
    4. Elish Kelly & Seamus McGuinness & Philip J. O'Connell & Alberto González Pandiella & David Haugh, 2015. "How did Immigrants fare in the Irish Labour Market over the Great Recession?," Working Papers 201513, Geary Institute, University College Dublin.
    5. Kelly, Elish & McGuinness, Seamus, 2015. "Impact of the Great Recession on unemployed and NEET individuals’ labour market transitions in Ireland," Economic Systems, Elsevier, vol. 39(1), pages 59-71.
    6. repec:esr:resser:bkmnext328 is not listed on IDEAS
    7. Valerija Botric & Iva Tomic, 2016. "Self-employment of the young and the old: exploring effects of the crisis in Croatia," Working Papers 1603, The Institute of Economics, Zagreb.
    8. Adele Bergin & Elish Kelly & Seamus McGuinness, 2015. "Changes in labour market transitions in Ireland over the Great Recession: what role for policy?," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-18, December.
    9. Conefrey, Thomas & McCarthy, Yvonne & Sherman, Martina, 2013. "Re-employment Probabilities for Unemployed Workers in Ireland," Economic Letters 06/EL/13, Central Bank of Ireland.
    10. Byrne, David & Duffy, David & FitzGerald, John, 2014. "Household Formation and Tenure Choice: Did the great Irish housing bust alter consumer behaviour?," Papers WP487, Economic and Social Research Institute (ESRI).
    11. Smyth, Emer & Banks, Joanne & Whelan, Adele & Darmody, Merike & McCoy, Selina, 2015. "Review of the School Completion Programme," Research Series, Economic and Social Research Institute (ESRI), number RS44.
    12. Bergin, Adele & Kelly, Elish & McGuinness, Seamus, 2014. "Changes in Labour Market Transitions in Ireland over the Great Recession," Papers WP485, Economic and Social Research Institute (ESRI).
    13. Iva Tomic, 2016. "What drives youth unemployment in Europe?," Working Papers 1601, The Institute of Economics, Zagreb.

    More about this item


    education/employment/Ireland/labour market/Nationality/recession/unemployment;

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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