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Youth Unemployment in Old Europe: The Polar Cases of France and Germany

Author

Listed:
  • Cahuc, Pierre

    () (Sciences Po, Paris)

  • Carcillo, Stéphane

    () (OECD)

  • Rinne, Ulf

    () (IZA)

  • Zimmermann, Klaus F.

    (University of Bonn)

Abstract

France and Germany are two polar cases in the European debate about rising youth unemployment. Similar to what can be observed in Southern European countries, a "lost generation" may arise in France. In stark contrast, youth unemployment has been on continuous decline in Germany for many years, hardly affected by the Great Recession. This paper analyzes the diametrically opposed developments in the two countries to derive policy lessons. As the fundamental differences in youth unemployment are primarily resulting from structural differences in labor policy and in the (vocational) education system, any short-term oriented policies can only have temporary effects. Ultimately, the youth unemployment disease in France and in other European countries has to be cured with structural reforms.

Suggested Citation

  • Cahuc, Pierre & Carcillo, Stéphane & Rinne, Ulf & Zimmermann, Klaus F., 2013. "Youth Unemployment in Old Europe: The Polar Cases of France and Germany," IZA Discussion Papers 7490, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp7490
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    labor policy; demographic trends; minimum wages; youth unemployment; Great Recession; employment protection; labor market institutions; vocational education and training;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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