Il difficile passaggio verso il lavoro dei giovani che lasciano la scuola: quali possibili politiche?
[The hard access to the labour market of youth leaving school: what policy choices?]
Youth leaving school and searching for a job suffer of work experience gap. This is very similar to the skill mismatch that occurs after a shock of demand or supply of competencies: to adequate the supply of competences to the new needs, it is necessary to modify the education and training system which takes time and money. Young people face a similar problem during their school to work transition. In fact, despite ever increasing educational attainment, they lack the other two components of human capital: generic and job-specific work experience. In order to fill this experience gap, they carry out a searching strategy by which they move among different labour market statuses in search for the best job-worker match. However, the process of transition is a complex phenomenon with strong elements of rigidity, concerning the institutions (school, training and university systems and labour agencies) and the norms and contracts regulating the labour market, uncertainty and errors of judgment. Accordingly, the search strategy takes time and is costly. Lower quality Institutions and not flexible labour markets augment the risk that youth make a mistake in their searching investment, or send wrong signals to the firms, and consequently fall permanently into a chain of high and long term unemployment, low pay, temporary or part-time work or inactivity. A comparative analysis shows that the youth condition is not the same all over the OECD countries. To help young people smooth school-to-work transitions, every country has provided a mix of policy instruments reaching different outcomes. We can sum up these instruments into two groups: policies that, considering the need of firms to minimize the labour costs, aim at introducing different degrees and types of labour market flexibility, and policies that, considering the need of new entrants to adequate their human capital , adopt programs of training and labour market active policies or reforms of their education and training system. Broadly speaking, countries with flexible labour market and relatively less expenditures in training and active policies get both low and very high levels of youth unemployment. Nevertheless, Centre-North European countries get a relatively low unemployment rate with more welfare guarantees to youth and high expenditure in training and active policies. However, there is a general consensus both in criticizing the second type of policies, since these are too expensive for the public finances, and in preferring the liberalization of the labour market. This paper is meant to analyze the case of the young graduates and the probability to be overqualified or underskilled. It gives evidence that policies to cut down the labour costs and salaries are of little scope merely aiming at an immediate saving, on the other hand, they are damaging in the long term. Conversely, investments in human capital are very important to augment the productivity growth and reduce regional differences. University and school of low quality as well as lack of instruments aiming at strengthening the link between the education system and the work experience, make permanent the qualification and skill mismatch and hinder wages from restoring the equilibrium of the labour market. In the long term, the wage gap for overqualified and underskilled has consequences on productivity growth. Considerations are made also for the Mezzogiorno case.
|Date of creation:||26 Mar 2012|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Massimiliano Bratti & Daniele Checchi & Guido de Blasio, 2008.
"Does the Expansion of Higher Education Increase the Equality of Educational Opportunities? Evidence from Italy,"
CEIS, vol. 22(s1), pages 53-88, 06.
- Bratti, Massimiliano & Checchi, Daniele & de Blasio, Guido, 2008. "Does the Expansion of Higher Education Increase the Equality of Educational Opportunities? Evidence from Italy," IZA Discussion Papers 3361, Institute for the Study of Labor (IZA).
- Massimiliano Bratti & Daniele Checchi & Guido de Blasio, 2008. "Does the expansion of higher education increase the equality of educational opportunities? Evidence from Italy," Temi di discussione (Economic working papers) 679, Bank of Italy, Economic Research and International Relations Area.
- Jonathan Gruber & David A. Wise, 2010. "Social Security Programs and Retirement around the World: The Relationship to Youth Employment," NBER Books, National Bureau of Economic Research, Inc, number grub08-1, April.
- Antonio Ciccone & Federico Cingano & Piero Cipollone, 2004. "The Private and Social Return to Schooling in Italy," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 63(3-4), pages 413-444, December.
- Antonio Ciccone & Federico Cingano & Piero Cipollone, 2006. "The private and social return to schooling in Italy," Temi di discussione (Economic working papers) 569, Bank of Italy, Economic Research and International Relations Area.
- Federico Cingano & Piero Cipollone, 2009. "The private and social return to schooling in Italy," Questioni di Economia e Finanza (Occasional Papers) 53, Bank of Italy, Economic Research and International Relations Area.
- Giorgio Brunello & Daniele Checchi, 2007. "Does school tracking affect equality of opportunity? New international evidence," Economic Policy, CEPR;CES;MSH, vol. 22, pages 781-861, October.
- Daniele Checchi & Giorgio Brunello, 2006. "Does School Tracking Affect Equality of Opportunity? New International Evidence," UNIMI - Research Papers in Economics, Business, and Statistics unimi-1044, Universitá degli Studi di Milano.
- Brunello, Giorgio & Checchi, Daniele, 2006. "Does School Tracking Affect Equality of Opportunity? New International Evidence," IZA Discussion Papers 2348, Institute for the Study of Labor (IZA).
- Giuseppe Croce & Emanuela Ghignoni, 2011. "Overeducation and spatial flexibility in Italian local labour markets," Working Papers 145, University of Rome La Sapienza, Department of Public Economics.
- Croce, Giuseppe & Ghignoni, Emanuela, 2011. "Overeducation and spatial flexibility in Italian local labour markets," MPRA Paper 29670, University Library of Munich, Germany.
- Agar Brugiavini & Franco Peracchi, 2010. "Youth Unemployment and Retirement of the Elderly: The Case of Italy," NBER Chapters, in: Social Security Programs and Retirement around the World: The Relationship to Youth Employment, pages 167-215 National Bureau of Economic Research, Inc.
- Agar Brugiavini & Franco Peracchi, 2008. "Youth Unemployment and Retirement of the Elderly: the Case of Italy," Working Papers 2008_45, Department of Economics, University of Venice "Ca' Foscari".
- Caroleo Floro Ernesto & Pastore Francesco, 2009. "Le cause del(l') (in)successo lavorativo dei giovani," Economia & lavoro, Carocci editore, issue 3, pages 107-107.
- Caroleo, Floro Ernesto & Pastore, Francesco, 2009.
"Le cause del (l’in-)successo lavorativo dei giovani
[The determinants of youth success in the labour market]," MPRA Paper 14218, University Library of Munich, Germany.
- Caroleo, Floro Ernesto & Pastore, Francesco, 2011. "Talking about the Pigou Paradox: Socio-Educational Background and Educational Outcomes of AlmaLaurea," IZA Discussion Papers 6021, Institute for the Study of Labor (IZA).
- repec:ilo:emwpap:2008-14 is not listed on IDEAS
- Francesco Pastore, 2009. "School-to-Work Transitions in Mongolia," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 6(2), pages 245-264, December.
- Pastore, Francesco., 2008. "School-to-work-transitions in Mongolia," ILO Working Papers 994238953402676, International Labour Organization.
- Patrizia Ordine & Giuseppe Rose, 2009. "Overeducation and Instructional Quality: A Theoretical Model and Some Facts," Journal of Human Capital, University of Chicago Press, vol. 3(1), pages 73-105. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:37645. 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: (Joachim Winter)
If references are entirely missing, you can add them using this form.