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Euro, crisis and unemployment: Youth patterns, youth policies?

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  • Hector Sala Lorda

    () (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona)

  • Atanu Ghoshray

    (Newcastle University Business School)

  • Javier Ordóñez

    (Instituto de Economía Internacional, Universitat Jaume I, UPAEP)

Abstract

This paper examines the occurrence of structural breaks in European unemployment associated with major events experienced by the European economies at an institutional level: the creation of the European and Monetary Union (EMU) in 1999, and the Euro/financial crisis in 2008- 2009, which was followed by a general and intensive reform process in the years afterwards. Beyond the well documented asymmetries across countries, we uncover different responses of adult and youth unemployment rates. While adult unemployment is more prone to experience structural breaks, youth unemployment is more sensitive to business cycle oscillations. This has been especially so in the recent crisis and calls for fine tuning policy measures specifically targeted to youth unemployed in bad times. One important implication of our findings is that generic labour market reforms are not effective enough to solve the youth unemployment problem across Europe. We point to educational policies that raise average qualifications and help school-to-work transitions as suitable complementary cures.

Suggested Citation

  • Hector Sala Lorda & Atanu Ghoshray & Javier Ordóñez, 2016. "Euro, crisis and unemployment: Youth patterns, youth policies?," Working Papers wpdea1609, Department of Applied Economics at Universitat Autonoma of Barcelona.
  • Handle: RePEc:uab:wprdea:wpdea1609
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    1. repec:ite:iteeco:170308 is not listed on IDEAS
    2. repec:spr:izalbr:v:6:y:2017:i:1:d:10.1186_s40172-017-0054-3 is not listed on IDEAS
    3. 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.
    4. repec:ite:iteeco:170101 is not listed on IDEAS

    More about this item

    Keywords

    Unemployment; structural breaks; crisis; Eurozone; youth; education;

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • F66 - International Economics - - Economic Impacts of Globalization - - - Labor

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