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

Author

Listed:
  • Pierre Cahuc

    (Département d'économie (ECON))

  • Stéphane Carcillo

    (Département d'économie)

  • Ulf Rinne

    (Institute for the Study of Labor)

  • Klaus Zimmermann

    (Bonn Universität)

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 primarily result from structural differences in labor policy and in the (vocational) education system, short-term oriented policies do not address the core of the problems. Ultimately, the youth unemployment disease in France and in other European countries has to be cured with structural reforms.

Suggested Citation

  • Pierre Cahuc & Stéphane Carcillo & Ulf Rinne & Klaus Zimmermann, 2013. "Youth Unemployment in Old Europe: The Polar Cases of France and Germany," Sciences Po publications info:hdl:2441/7k0plsobem9, Sciences Po.
  • Handle: RePEc:spo:wpmain:info:hdl:2441/7k0plsobem9tuo09eg04jujb9a
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    More about this item

    Keywords

    Labor Policy; Labor Market Institutions; Great Recession; Youth Unemployment; Minimum Wages; Demographic Trends; Vocational Education and Training; Unemployment Protection;
    All these keywords.

    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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