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Youth Unemployment: Aggregate Incidence and Consequences for Individuals

Author

Listed:
  • Bruce Chapman

    (Australian National University)

  • Matthew Gray

    (Australian National University)

Abstract

This paper analyses the incidence and impact of unemployment among young Australians. It is argued that the scale and seriousness of the current youth problem are often overstated. There is no evidence that the aggregate unemployment experience of young Australians has changed over the last two decades. The groups of young people most at risk of unemployment are identified. While the overall scale of the problem is not worsening, some of the young unemployed face adverse future labour market outcomes. It is argued that while there is a role for specific policies targeted at young people, these need to be accompanied by policies that involve managing aggregate demand.

Suggested Citation

  • Bruce Chapman & Matthew Gray, 2004. "Youth Unemployment: Aggregate Incidence and Consequences for Individuals," Labor and Demography 0408001, EconWPA.
  • Handle: RePEc:wpa:wuwpla:0408001
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    References listed on IDEAS

    as
    1. Holzer, Harry J, 1988. "Search Method Use by Unemployed Youth," Journal of Labor Economics, University of Chicago Press, vol. 6(1), pages 1-20, January.
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    5. Matthew Gray, 2000. "The Effects of Unemployment on the Earnings of Young Australians," CEPR Discussion Papers 419, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    6. Rosella Gardecki & David Neumark, 1998. "Order from Chaos? The Effects of Early Labor Market Experiences on Adult Labor Market Outcomes," ILR Review, Cornell University, ILR School, vol. 51(2), pages 299-322, January.
    7. Gregory, M. & Jukes, R., 1997. "The Effects of Unemployment on Subsequent Earnings: A Study of British Men 1984-94," Papers 21, Centre for Economic Performance & Institute of Economics.
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    12. Ruhm, Christopher J, 1997. "Is High School Employment Consumption or Investment?," Journal of Labor Economics, University of Chicago Press, vol. 15(4), pages 735-776, October.
    13. Hardin, A & Kapuscinski, C, 1997. "Young Australians in Unemployment : Despair by any Other Name," CEPR Discussion Papers 359, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    14. Harris, Mark N, 1996. "Modelling the Probability of Youth Unemployment in Australia," The Economic Record, The Economic Society of Australia, vol. 72(217), pages 118-129, June.
    15. Ackum, Susanne, 1991. " Youth Unemployment, Labor Market Programs and Subsequent Earnings," Scandinavian Journal of Economics, Wiley Blackwell, vol. 93(4), pages 531-543.
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    JEL classification:

    • J - Labor and Demographic Economics

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