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The Challenge of Youth Unemployment

  • Niall O'Higgins

    (CELPE & CSEF, Dipartimento di Scienze Economiche e Statistiche, Università di Salerno)

This paper presents an overview of the youth unemployment problem and youth employment policy principally from the European perspective although it is hoped that much of the coment and analysis is relevant for a much broader range of countries. Its intention is to raise issues rather than provide a blueprint for policy. In the first part, which considers the nature and caiuses of youth unemployment, it is shown thatbthe basic cause of youth unemployment is insufficient aggregate demand rather than high youth wages or the size of the youth cohort, and suggests that a successful strategy for dealing with this problem must take this into account. In the second section, dealing principally with the examples of the UK and Germany, a number of factors are identified which influence the effectiveness of youth employment policy. IN particular, it is found that precise targetting of programmes and the involvement of employers' and workers' organisations as well as government in the design and implementation of policy are both important determinants of an effective policy.

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File URL: http://128.118.178.162/eps/lab/papers/0507/0507003.pdf
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Paper provided by EconWPA in its series Labor and Demography with number 0507003.

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Length: 77 pages
Date of creation: 06 Jul 2005
Date of revision:
Handle: RePEc:wpa:wuwpla:0507003
Note: Type of Document - pdf; pages: 77. ILO, Employment & Training Papers no. 7, 1997. A briefer version has also been published in the International Review of Social Security, Vol. 50, no. 4, pp. 63-93, 1997.
Contact details of provider: Web page: http://128.118.178.162

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  1. Peter Dolton & Gerald Makepeace & John Treble, 1994. "Public- and Private-Sector Training of Young People in Britain," NBER Chapters, in: Training and the Private Sector: International Comparisons, pages 261-282 National Bureau of Economic Research, Inc.
  2. David G. Blanchflower & Richard B. Freeman, 2000. "Youth Employment and Joblessness in Advanced Countries," NBER Books, National Bureau of Economic Research, Inc, number blan00-1, December.
  3. Acemoglu, D. & Pischki, J.S., 1996. "Why Do Firms Train? Theory and Evidence," Working papers 96-7, Massachusetts Institute of Technology (MIT), Department of Economics.
  4. Bell, David N.F. & Blanchflower, David G., 2010. "Youth Unemployment: Déjà Vu?," IZA Discussion Papers 4705, Institute for the Study of Labor (IZA).
  5. repec:fth:inseep:9652 is not listed on IDEAS
  6. Sanders Korenman & David Neumark, 2000. "Cohort Crowding and Youth Labor Markets (A Cross-National Analysis)," NBER Chapters, in: Youth Employment and Joblessness in Advanced Countries, pages 57-106 National Bureau of Economic Research, Inc.
  7. David Soskice, 1994. "Reconciling Markets and Institutions: The German Apprenticeship System," NBER Chapters, in: Training and the Private Sector: International Comparisons, pages 25-60 National Bureau of Economic Research, Inc.
  8. John M. Abowd & Francis Kramarz & Thomas Lemieux & David N. Margolis, 1997. "Minimum Wages and Youth Employment in France and the United States," NBER Working Papers 6111, National Bureau of Economic Research, Inc.
  9. repec:dgr:kubcen:199422 is not listed on IDEAS
  10. Narendranathan, W. & Elias, P., 1990. "Influences of Past History on the Incidence of Youth Unemployment: Empirical Finding for the U.K," The Warwick Economics Research Paper Series (TWERPS) 369, University of Warwick, Department of Economics.
  11. Keith Whitfield & Constantine Bourlakis, 1991. "An Empirical Analysis of YTS, Employment and Earnings," Journal of Economic Studies, Emerald Group Publishing, vol. 18(1), pages 42-56, January.
  12. Nicholas Oulton & Hilary Steedman, 1994. "The British System of Youth Training: A Comparison with Germany," NBER Chapters, in: Training and the Private Sector: International Comparisons, pages 61-76 National Bureau of Economic Research, Inc.
  13. Dickens, Richard & Machin, Stephen & Manning, Alan, 1999. "The Effects of Minimum Wages on Employment: Theory and Evidence from Britain," Journal of Labor Economics, University of Chicago Press, vol. 17(1), pages 1-22, January.
  14. van Soest, A.H.O., 1994. "Youth minimum wage rates : The Dutch experience," Discussion Paper 1994-22, Tilburg University, Center for Economic Research.
  15. Wolfgang Franz & Joachim Inkmann & Winfried Pohlmeier & Volker Zimmermann, 1997. "Young and Out in Germany: On the Youths' Chances of Labor Market Entrance in Germany," NBER Working Papers 6212, National Bureau of Economic Research, Inc.
  16. James Meade., . "Agathotopia," Hume Papers 16, David Hume Institute.
  17. repec:nsr:niesrd:10 is not listed on IDEAS
  18. Francine D. Blau & Lawrence M. Kahn, 1997. "Gender and Youth Employment Outcomes: The US and West Germany, 1984-91," NBER Working Papers 6078, National Bureau of Economic Research, Inc.
  19. Rice, Patricia G, 1986. "Juvenile Unemployment, Relative Wages and Social Security in Great Britain," Economic Journal, Royal Economic Society, vol. 96(382), pages 352-74, June.
  20. Ridder, G, 1986. "An Event History Approach to the Evaluation of Training, Recruitment and Employment Programmes," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 1(2), pages 109-26, April.
  21. Main, Brian G M, 1987. "The Wage Expectations and Unemployment Experience of School Leavers," Scottish Journal of Political Economy, Scottish Economic Society, vol. 34(4), pages 349-67, November.
  22. Robert G. Fay, 1996. "Enhancing the Effectiveness of Active Labour Market Policies: Evidence from Programme Evaluations in OECD Countries," OECD Labour Market and Social Policy Occasional Papers 18, OECD Publishing.
  23. repec:cup:cbooks:9780521556972 is not listed on IDEAS
  24. Richard Layard, 1982. "Youth Unemployment in Britain and the United States Compared," NBER Chapters, in: The Youth Labor Market Problem: Its Nature, Causes, and Consequences, pages 499-542 National Bureau of Economic Research, Inc.
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