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Decomposition of trends in youth unemployment – the role of job accessions and separations in countries with different employment protection regimes

Author

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  • Anna Baranowska-Rataj

    ()

  • Iga Magda

    () (Institute of Statistics and Demography, Warsaw School of Economics)

Abstract

We examine the drivers of youth unemployment in Poland and Spain, countries where youth have a marginalised labour market position. We decompose the trends in unemployment rates in 1990-2011. We disentangle the role of prolonging job search and the impact of dismissals. The contribution of these two factors to the changes in unemployment rates is compared between youth and the reference group of prime-age workers. We show that in both countries, youth had actually higher chances of finding jobs than the prime-age workers during last two decades. However, the probability of job separation among youth was persistently higher. Moreover, the youth job separation risk reacted to recessions much stronger than the prime-age group risk. In Poland the disparity between the impact of job dismissals on changes in unemployment rates among young and prime-age men is relatively lower than in Spain, which could be ascribed to countries’ differential employment protection regimes.

Suggested Citation

  • Anna Baranowska-Rataj & Iga Magda, 2013. "Decomposition of trends in youth unemployment – the role of job accessions and separations in countries with different employment protection regimes," Working Papers 53, Institute of Statistics and Demography, Warsaw School of Economics.
  • Handle: RePEc:isd:wpaper:53
    as

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    File URL: http://kolegia.sgh.waw.pl/pl/KAE/struktura/ISiD/publikacje/Documents/Working_Paper/ISID_WP_26_2013.pdf
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    References listed on IDEAS

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    Cited by:

    1. Anna Baranowska-Rataj & Iga Magda, 2014. "Inequality in the risk of job loss between young and prime-age workers: Can it be explained by human capital or structural factors?," Working Papers 73, Institute of Statistics and Demography, Warsaw School of Economics.

    More about this item

    Keywords

    unemployment; job flows; job separations; segmented labour markets;

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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