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Youth Unemployment in Advanced Europe :, Okun’s Law and Beyond, Angana Banerji, Huidan Lin, Sergejs Saksonovs

Abstract
The crisis has intensified what was previously a chronic unemployment problem in Europe; youth unemployment is now at unprecedented highs in some European countries. This paper assesses the main drivers of youth unemployment in Europe. It finds that much of the increase in youth unemployment rates during the crisis can be explained by output dynamics and the greater sensitivity of youth unemployment to economic activity than adult unemployment. Labor market institutions also play a significant role in explaining the persistently high levels of youth unemployment, especially the tax wedge, minimum wages relative to the median wage, spending on active labor market policies, the opportunity cost of working (measured by the unemployment benefits), vocational training, and labor market duality. This suggests that policies to address youth unemployment should be comprehensive and country-specific, focused on reviving growth and advancing labor market reforms
Table Of Contents
Cover; Contents; I. Introduction; II. Stylized Facts; III. Data and Methodology; A. Variable Selection and Data Coverage; B. Methodology; IV. Empirical Results; A. Estimating the Okun's Coefficient; Box; 1. SMEs: Financing Constraints and Youth Unemployment; B. Estimating the Role of Labor Market Features; C. The Role of Product Market Reforms; V. Conclusions; References; Tables; 1. Data Definitions; 2. Okun's Law Estimates; 3. Okun's Law: Decomposition of Expenditure Components; 4. Multivariate Model Estimates; 5. Univariate Model Estimates without Interaction Term
Language
eng
Literary Form
non fiction
Note
Description based upon print version of record
Physical Description
1 online resource (39 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781475559118

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