IDEAS home Printed from https://ideas.repec.org/p/pia/papers/0001-2014.html
   My bibliography  Save this paper

Youth Unemployment in Italy and Russia: Aggregate Trends and the Role of Individual Determinants

Author

Listed:
  • Enrico MARELLI
  • Elena VAKULENKO

Abstract

Youth unemployment is a troublesome problem in many European countries. In the first part of the paper, we consider the aggregate trends in some EU countries and in Russia; we especially investigate the recent period after the global crisis and Great Recession. We then consider the different types of determinants, including macroeconomic conditions, structural determinants, labour market institutions and regulations. However, the focus of our analysis is on the role played by individual and family determinants such as age, gender, education level, marital status, health, household income, housing condition. The econometric part of the paper makes use of Eurostat micro-level data EU-SILC for Italy and RLMS-HSE data set for Russia. We consider a Heckman probit model to estimate the unemployment risk of young people in the period 2004-2011. Our main research question is to explain the probability of being unemployed for young people in terms of their personal characteristics and compare these outcomes with results for the same model for adult people. We take also into account some macro variables, such as living in urban areas or the regional unemployment rate. The results are of interest, since the two countries have quite different labor market institutions, besides having different levels of youth unemployment. However, most of the explanatory variables act in the same direction in both countries and it is interesting to compare the relative size of such effects (that we measure through the "average partial effects").

Suggested Citation

  • Enrico MARELLI & Elena VAKULENKO, 2014. "Youth Unemployment in Italy and Russia: Aggregate Trends and the Role of Individual Determinants," Working papers of the Department of Economics - University of Perugia (IT) 0001/2014, Università di Perugia, Dipartimento Economia.
    • Handle: RePEc:pia:papers:0001/2014
    as

    Download full text from publisher

    File URL: http://www.econ.unipg.it/files/generale/WP_2014/WP_01_2014_MarelliVakulenko.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Пересецкий А.А., 2007. "Методы Оценки Вероятности Дефолта Банков," Журнал Экономика и математические методы (ЭММ), Центральный Экономико-Математический Институт (ЦЭМИ), vol. 43(3), июль.
    2. 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.
    3. Nickell, Stephen & Layard, Richard, 1999. "Labor market institutions and economic performance," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 46, pages 3029-3084, Elsevier.
    4. Alfonso ARPAIA & Nicola CURCI, "undated". "EU labour market behaviour during the Great Recession," Working Papers wp2010-6, Department of the Treasury, Ministry of the Economy and of Finance.
    5. Anatoly Peresetsky & Alexandr Karminsky & Sergei Golovan, 2011. "Probability of default models of Russian banks," Economic Change and Restructuring, Springer, vol. 44(4), pages 297-334, November.
    6. Elish Kelly & Seamus McGuinness & Philip J O’connell & David Haugh & Alberto GonzÁlez Pandiella, 2014. "Transitions In and Out of Unemployment among Young People in the Irish Recession," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 56(4), pages 616-634, December.
    7. Francesco Pastore, 2012. "To Study or to Work?," Eastern European Economics, Taylor & Francis Journals, vol. 50(3), pages 49-78, May.
    8. Glenda Quintini & Thomas Manfredi, 2009. "Going Separate Ways? School-to-Work Transitions in the United States and Europe," OECD Social, Employment and Migration Working Papers 90, OECD Publishing.
    9. Richard Freeman & David G. Blanchflower, 2000. "Introduction to "Youth Employment and Joblessness in Advanced Countries"," NBER Chapters, in: Youth Employment and Joblessness in Advanced Countries, pages 1-16, National Bureau of Economic Research, Inc.
    10. O'Higgins, Niall, 2015. "Youth Unemployment," IZA Policy Papers 103, Institute of Labor Economics (IZA).
    11. Andrea Bassanini & Romain Duval, 2009. "Unemployment, institutions, and reform complementarities: re-assessing the aggregate evidence for OECD countries," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 25(1), pages 40-59, Spring.
    12. Enrico Marelli & Misbah T. Choudhry & Marcello Signorelli, 2013. "Youth and total unemployment rate: the impact of policies and institutions," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 121(1), pages 63-86.
    13. Misbah Tanveer Choudhry & Enrico Marelli & Marcello Signorelli, 2012. "Youth unemployment rate and impact of financial crises," International Journal of Manpower, Emerald Group Publishing Limited, vol. 33(1), pages 76-95, March.
    14. Vladimir Gimpelson & Rostislav Kapelyushnikov & Anna Lukyanova, 2010. "Employment Protection Legislation in Russia: Regional Enforcement and Labor Market Outcomes," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 52(4), pages 611-636, December.
    15. 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.
    16. 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, edition 1, number 9780226056586, December.
    17. 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.
    18. O'Higgins, Niall, 2012. "This Time It's Different? Youth Labour Markets During 'The Great Recession'," IZA Discussion Papers 6434, Institute of Labor Economics (IZA).
    19. Olga Demidova & Enrico Marelli & Marcello Signorelli, 2013. "Spatial Effects on the Youth Unemployment Rate," Eastern European Economics, Taylor & Francis Journals, vol. 51(5), pages 94-124, September.
    20. Francesco Pastore, 2012. "Primum vivere . . . industrial change, job destruction and the geographical distribution of unemployment," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 1(1), pages 1-15, December.
    21. Floro Ernesto Caroleo & Francesco Pastore, 2007. "The Youth Experience Gap: Explaining Differences across EU Countries," Quaderni del Dipartimento di Economia, Finanza e Statistica 41/2007, Università di Perugia, Dipartimento Economia.
    22. Stefano Scarpetta & Anne Sonnet & Thomas Manfredi, 2010. "Rising Youth Unemployment During The Crisis: How to Prevent Negative Long-term Consequences on a Generation?," OECD Social, Employment and Migration Working Papers 106, OECD Publishing.
    23. Sergio Destefanis & Giuseppe Mastromatteo, 2010. "Labour‐market performance in the OECD: some recent cross‐country evidence," International Journal of Manpower, Emerald Group Publishing Limited, vol. 31(7), pages 713-731, October.
    24. 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, March.
    25. Shilov, Andrey & Möller, Joachim, 2009. "The wage curve in Russia, 1995-2005," Economics Letters, Elsevier, vol. 102(2), pages 90-92, February.
    26. David N. F. Bell & David G. Blanchflower, 2011. "Young people and the Great Recession," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 27(2), pages 241-267.
    27. Tindara Addabbo & Paula Rodr íguez-Modroño & Lina Gálvez-Muñoz, 2014. "Youth living in a couple. How women's labour supply adapts to the crisis. The case of Spain," Center for the Analysis of Public Policies (CAPP) 0114, Universita di Modena e Reggio Emilia, Dipartimento di Economia "Marco Biagi".
    28. Nicolas Hérault & Weiping Kostenko & Gary Marks & Rezida Zakirova, 2012. "The effects of macroeconomic conditions on the education and employment outcomes of youth," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 15(1), pages 17-36.
    29. Demidova, Olga & Marelli, Enrico & Signorelli, Marcello, 2015. "Youth labour market performances in the Russian and Italian regions," Economic Systems, Elsevier, vol. 39(1), pages 43-58.
    30. Fiorella Kostoris Padoa Schioppa & Claudio Lupi, 2002. "Family Income and Wealth, Youth Unemployment and Active Labour Market Policies," International Review of Applied Economics, Taylor & Francis Journals, vol. 16(4), pages 407-416.
    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. Riza Bayrak, Halim Tatli, 2018. "The Determinants of Youth Unemployment: A Panel Data Analysis of OECD Countries," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 15(2), pages 231-248, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Enrico Marelli & Elena Vakulenko, 2016. "Youth unemployment in Italy and Russia: Aggregate trends and individual determinants," The Economic and Labour Relations Review, , vol. 27(3), pages 387-405, September.
    2. Josef C Brada & Marcello Signorelli, 2012. "Comparing Labor Market Performance: Some Stylized Facts and Key Findings," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 54(2), pages 231-250, June.
    3. Enrico Marelli & Misbah T. Choudhry & Marcello Signorelli, 2013. "Youth and total unemployment rate: the impact of policies and institutions," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 121(1), pages 63-86.
    4. Floro Ernesto Caroleo & Elvira Ciociano & Sergio Destefanis, 2017. "Youth Labour-Market Performance, Institutions and Vet Systems: A Cross-Country Analysis," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 3(1), pages 39-69, March.
    5. Dal Bianco, Silvia & Bruno, Randolph L. & Signorelli, Marcello, 2015. "The joint impact of labour policies and the “Great Recession” on unemployment in Europe," Economic Systems, Elsevier, vol. 39(1), pages 3-26.
    6. 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.
    7. 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.
    8. Iva Tomic, 2016. "What drives youth unemployment in Europe?," Working Papers 1601, The Institute of Economics, Zagreb.
    9. Demidova, Olga & Marelli, Enrico & Signorelli, Marcello, 2015. "Youth labour market performances in the Russian and Italian regions," Economic Systems, Elsevier, vol. 39(1), pages 43-58.
    10. Marelli Enrico & Sciulli Dario & Signorelli Marcello, 2014. "Skill mismatch of graduates in a local labour market," Экономика региона, CyberLeninka;Федеральное государственное бюджетное учреждение науки «Институт экономики Уральского отделения Российской академии наук», issue 2, pages 181-194.
    11. Enrico Marelli & Giovanni Bruno & Marcello Signorelli, 2013. "Young People in Crisis: NEETs and Unemployed in EU Regions," ERSA conference papers ersa13p895, European Regional Science Association.
    12. repec:ces:ifofor:v:18:y:2017:i:2:p:19-25 is not listed on IDEAS
    13. Iva TOMIĆ, 2018. "What drives youth unemployment in Europe? Economic vs non‐economic determinants," International Labour Review, International Labour Organization, vol. 157(3), pages 379-408, September.
    14. Marios Michaelides & Peter Mueser & Jeffrey Smith, 2019. "Youth Unemployment and U.S. Job Search Assistance Policy during the Great Recession," University of Cyprus Working Papers in Economics 13-2019, University of Cyprus Department of Economics.
    15. Floro Ernesto Caroleo & Elvira Ciociano & Sergio Destefanis, 2017. "The role of the education systems and the labour market institutions in enhancing youth employment: a cross-country analysis," Discussion Papers 1_2017, CRISEI, University of Naples "Parthenope", Italy.
    16. Olga Demidova & Marcello Signorelli, 2010. "The Impact of Crises on Youth Unemployment of Russian Regions: An Empirical Analysis," Quaderni del Dipartimento di Economia, Finanza e Statistica 78/2010, Università di Perugia, Dipartimento Economia.
    17. Liotti, Giorgio, 2020. "Labour market flexibility, economic crisis and youth unemployment in Italy," Structural Change and Economic Dynamics, Elsevier, vol. 54(C), pages 150-162.
    18. Ondřej Dvouletý & Martin Lukeš & Mihaela Vancea, 2020. "Individual-level and family background determinants of young adults’ unemployment in Europe," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 47(2), pages 389-409, May.
    19. Dunsch, Sophie, 2015. "Okun's law and youth unemployment in Germany and Poland," Discussion Papers 373, European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics.
    20. Zimmermann, Klaus F. & Biavaschi, Costanza & Eichhorst, Werner & Giulietti, Corrado & Kendzia, Michael J. & Muravyev, Alexander & Pieters, Janneke & Rodríguez-Planas, Núria & Schmidl, Ricarda, 2013. "Youth Unemployment and Vocational Training," Foundations and Trends(R) in Microeconomics, now publishers, vol. 9(1–2), pages 1-157, December.
    21. Joseph Anthony Mauro & Sophie Mitra, 2015. "Understanding Out-of-Work and Out-of-School Youth in Europe and Central Asia," World Bank Publications - Reports 22806, The World Bank Group.

    More about this item

    Keywords

    youth unemployment; individual determinants of unemployment; regional unemployment; Heckman Probit.;
    All these keywords.

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

    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:pia:papers:0001/2014. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ubaldo Pizzoli (email available below). General contact details of provider: https://edirc.repec.org/data/deperit.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.