IDEAS home Printed from
MyIDEAS: Login to save this paper or follow this series

Fixing Europe's youth unemployment and skills mismatch, can public financial support to SMEs be effective? The case of the European Commission and European Investment Bank joint initiatives

  • Floreani, Vincent Arthur

“We risk having a generation that hasn’t held a job. Personal dignity comes from working [...] Young people are in a crisis". Pope Francis - July the 22nd, 2013. Youth unemployment is a critical issue across the European Union with 5.5 million people unemployed among the 18-24 years age group (23.3% unemployment rate). Evidence reveals that youth unemployment in the EU mainly arises from two sources. Firstly, young people lack some of the relevant skills for the labor market.Secondly, firms’ ability to hire them is challenged by a constrained access to finance. In reaction, European leaders have implemented “offensive” programs (F. Hollande). Among them, leading initiatives sponsored by the European Commission(EC) and the European Investment Bank (EIB), aim to provide subsidized loans to Small and Medium Enterprises (SMEs) for hiring and training young people. This approach seems relevant and sustainable as it addresses the two sources of youth unemployment and ought to combine jobs opportunities with skills development. This thesis assesses the relevance and scope for effectiveness of concessional loans provision to SMEs as a strategy to bolster youth employment and training opportunities.Starting with a comprehensive analysis of the EU youth unemployment, it outlines the rationale for a public intervention supporting SMEs based vocational training programs for youth. In addition, it exposes the main instruments mobilized in this field by the EU institutions. Through a deep demand-driven firm level and regional analysis, it determines both the needs and expected returns of such initiatives.Eventually, these results associated with a review of some successful case studies, set out the most effective programmatic, policy and financing intervention types, which ought to be scaled up within the EU.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
File Function: original version
Download Restriction: no

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 55849.

in new window

Date of creation: 17 Feb 2014
Date of revision:
Handle: RePEc:pra:mprapa:55849
Contact details of provider: Postal: Schackstr. 4, D-80539 Munich, Germany
Phone: +49-(0)89-2180-2219
Fax: +49-(0)89-2180-3900
Web page:

More information through EDIRC

References listed on IDEAS
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.:

as in new window
  1. Andrea Bassanini & Alison Booth & Giorgio Brunello & Maria De Paola & Edwin Leuven, 2006. "Workplace training in Europe," Post-Print halshs-00120601, HAL.
  2. Reyes Aterido & Mary Hallward-Driemeier & Carmen Pag�s, 2011. "Big Constraints to Small Firms’ Growth? Business Environment and Employment Growth across Firms," Economic Development and Cultural Change, University of Chicago Press, vol. 59(3), pages 609 - 647.
  3. Stevens, M., 1999. "Should Firms be Required to Pay for Vocational Training?," Economics Papers 1999-w4, Economics Group, Nuffield College, University of Oxford.
  4. Temple, Jonathan, 2001. "Growth Effects of Education and Social Capital in the OECD Countries," CEPR Discussion Papers 2875, C.E.P.R. Discussion Papers.
  5. repec:cep:sticas:/124 is not listed on IDEAS
  6. Tattara, Giuseppe & Valentini, Marco, 2008. "Can employment subsidies and greater labour market flexibility increase job opportunities for youth? Revisiting the Italian On-the-job Training Program," MPRA Paper 10370, University Library of Munich, Germany.
  7. Pedro S. Martins & Jim Jin, 2008. "Firm-Level Social Returns to Education," Working Papers 9, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
  8. Parent, Daniel, 1999. "Wages and Mobility: The Impact of Employer-Provided Training," Journal of Labor Economics, University of Chicago Press, vol. 17(2), pages 298-317, April.
  9. Alan Barrett & Philip J. O'Connell, 2001. "Does training generally work? The returns to in-company training," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 54(3), pages 647-662, April.
  10. Aterido, Reyes & Hallward-Driemeier, Mary & Pagés, Carmen, 2007. "Investment Climate and Employment Growth: The Impact of Access to Finance, Corruption and Regulations Across Firms," IZA Discussion Papers 3138, Institute for the Study of Labor (IZA).
  11. Ann P. Bartel, 1992. "Training, Wage Growth and Job Performance: Evidence From a Company Database," NBER Working Papers 4027, National Bureau of Economic Research, Inc.
  12. Dolton, Peter J & Makepeace, Gerald H & Treble, John G, 1994. "The Youth Training Scheme and the School-to-Work Transition," Oxford Economic Papers, Oxford University Press, vol. 46(4), pages 629-57, October.
  13. Almeida, Rita K. & Aterido, Reyes, 2010. "Investment in job training : why are SMES lagging so much behind ?," Policy Research Working Paper Series 5358, The World Bank.
  14. van Ours, J.C., 2002. "Comment on 'Can training and employment subsidies combat European unemployment?'," Other publications TiSEM 4c7e1e9a-b698-42a2-badb-f, Tilburg University, School of Economics and Management.
  15. Feng, Shuaizhang & Zheng, Bingyong, 2010. "Imperfect Information, On-the-Job Training, and the Employer Size-Wage Puzzle: Theory and Evidence," IZA Discussion Papers 4998, Institute for the Study of Labor (IZA).
  16. Kahn, Lisa B., 2010. "The long-term labor market consequences of graduating from college in a bad economy," Labour Economics, Elsevier, vol. 17(2), pages 303-316, April.
  17. Harry J. Holzer & Richard Block & Marcus Cheatham & Jack H. Knott, 1993. "Are training subsidies for firms effective? The Michigan experience," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 46(4), pages 625-636, July.
  18. Andrew T. Young & Matthew J. Higgins & Daniel Levy, 2008. "Sigma Convergence versus Beta Convergence: Evidence from U.S. County-Level Data," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 40(5), pages 1083-1093, 08.
  19. Eichhorst, Werner & Rodríguez-Planas, Núria & Schmidl, Ricarda & Zimmermann, Klaus F., 2012. "A Roadmap to Vocational Education and Training Systems Around the World," IZA Discussion Papers 7110, Institute for the Study of Labor (IZA).
  20. Ulrich Kohler & Frauke Kreuter, 2009. "Data Analysis using Stata, 2nd Edition," Stata Press books, StataCorp LP, number daus2, November.
  21. Elhanan Helpman & Marc J. Melitz & Stephen R. Yeaple, 2004. "Export Versus FDI with Heterogeneous Firms," American Economic Review, American Economic Association, vol. 94(1), pages 300-316, March.
  22. Polidano, Cain & Tabasso, Domenico, 2013. "Making It Real: The Benefits of Workplace Learning in Upper-Secondary VET Courses," IZA Discussion Papers 7633, Institute for the Study of Labor (IZA).
  23. Pablo Ibarraran & Laura Ripani & Bibiana Taboada & Juan Villa & Brigida Garcia, 2014. "Life skills, employability and training for disadvantaged youth: Evidence from a randomized evaluation design," IZA Journal of Labor & Development, Springer, vol. 3(1), pages 1-24, December.
  24. Almeida, Rita & Carneiro, Pedro, 2008. "The return to firm investments in human capital," Social Protection Discussion Papers 44947, The World Bank.
  25. Konings, Jozef & Vanormelingen, Stijn, 2009. "The Impact of Training on Productivity and Wages: Firm Level Evidence," CEPR Discussion Papers 7473, C.E.P.R. Discussion Papers.
  26. Xavier Sala-i-Martin, 1994. "Regional cohesion: Evidence and theories of regional growth and convergence," Economics Working Papers 104, Department of Economics and Business, Universitat Pompeu Fabra.
  27. Aghion, P. & Bolton, P. & Harris, C. & Jullien, B., 1990. "Optimal Learning By Experimentation," DELTA Working Papers 90-10, DELTA (Ecole normale supérieure).
  28. Muriel Roger & Philippe Zamora, 2011. "Hiring young, unskilled workers on subsidized open-ended contracts: a good integration programme?," Oxford Review of Economic Policy, Oxford University Press, vol. 27(2), pages 380-396.
  29. Paul M. Romer, 1994. "The Origins of Endogenous Growth," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 3-22, Winter.
  30. Bartel, Ann P, 1995. "Training, Wage Growth, and Job Performance: Evidence from a Company Database," Journal of Labor Economics, University of Chicago Press, vol. 13(3), pages 401-25, July.
  31. Andrea Bassanini & Romain Duval, 2006. "Employment Patterns in OECD Countries: Reassessing the Role of Policies and Institutions," OECD Economics Department Working Papers 486, OECD Publishing.
  32. Rita Almeida & Jere Behrman & David Robalino, 2012. "The Right Skills for the Job? Rethinking Training Policies for Workers," World Bank Publications, The World Bank, number 13075.
  33. Jochen Kluve & Christoph M. Schmidt, 2002. "Can training and employment subsidies combat European unemployment?," Economic Policy, CEPR;CES;MSH, vol. 17(35), pages 409-448, October.
  34. Rinne, Ulf & Schneider, Marc & Uhlendorff, Arne, 2007. "Too Bad to Benefit? Effect Heterogeneity of Public Training Programs," IZA Discussion Papers 3240, Institute for the Study of Labor (IZA).
  35. Hashimoto, Masanori, 1981. "Firm-Specific Human Capital as a Shared Investment," American Economic Review, American Economic Association, vol. 71(3), pages 475-82, June.
  36. Addison, John T & Siebert, W Stanley, 1994. "Vocational Training and the European Community," Oxford Economic Papers, Oxford University Press, vol. 46(4), pages 696-724, October.
  37. Jacob Mincer, 1981. "Human Capital and Economic Growth," NBER Working Papers 0803, National Bureau of Economic Research, Inc.
  38. Acemoglu, Daron & Pischke, Jorn-Steffen, 1999. "Beyond Becker: Training in Imperfect Labour Markets," Economic Journal, Royal Economic Society, vol. 109(453), pages F112-42, February.
  39. O'Higgins, Niall, 2012. "This Time It's Different? Youth Labour Markets During 'The Great Recession'," IZA Discussion Papers 6434, Institute for the Study of Labor (IZA).
  40. N. Gregory Mankiw & David Romer & David N. Weil, 1990. "A Contribution to the Empirics of Economic Growth," NBER Working Papers 3541, National Bureau of Economic Research, Inc.
  41. Dan A. Black & Brett J. Noel & Zheng Wang, 1999. "On-the-Job Training, Establishment Size, and Firm Size: Evidence for Economies of Scale in the Production of Human Capital," Southern Economic Journal, Southern Economic Association, vol. 66(1), pages 82-100, July.
  42. Popov, Alexander, 2013. "Credit constraints and investment in human capital: training evidence from transition economies," Working Paper Series 1606, European Central Bank.
  43. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
  44. Nicholas Barr, 1993. "Alternative funding resources for higher education," LSE Research Online Documents on Economics 280, London School of Economics and Political Science, LSE Library.
  45. Paul Ryan, 2001. "The School-to-Work Transition: A Cross-National Perspective," Journal of Economic Literature, American Economic Association, vol. 39(1), pages 34-92, March.
  46. Carlo Altomonte & Tommaso Aquilante, 2012. "The EU-EFIGE/Bruegel-Unicredit dataset," Working Papers 753, Bruegel.
  47. Barr, Nicholas, 1993. "Alternative Funding Resources for Higher Education," Economic Journal, Royal Economic Society, vol. 103(418), pages 718-28, May.
  48. Walter McMahon, 1998. "Conceptual Framework for the Analysis of the Social Benefits of Lifelong Learnings," Education Economics, Taylor & Francis Journals, vol. 6(3), pages 309-346.
  49. Aghion, Philippe, et al, 1991. "Optimal Learning by Experimentation," Review of Economic Studies, Wiley Blackwell, vol. 58(4), pages 621-54, July.
  50. Brunello, Giorgio & Comi, Simona & Sonedda, Daniela, 2010. "Training Subsidies and the Wage Returns to Continuing Vocational Training: Evidence from Italian Regions," IZA Discussion Papers 4861, Institute for the Study of Labor (IZA).
  51. Paul Ryan, 2001. "The School-to-Work Transition: A Cross-National Perspective: Corrigendum," Journal of Economic Literature, American Economic Association, vol. 39(3), pages 767-767, September.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:55849. 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: (Ekkehart Schlicht)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.