Impact of public expenditure in labour market policies and other selected factors on youth unemployment

Abstract

This study investigates the impact of selected macroeconomic, demographic, institutional and educational determinants on youth unemployment rates in Europe, with special attention to effects of Active Labour Market Policies on unemployment dynamics. Dynamic panel data estimates have been done with the Generalised Method of Moments on data from 27 E.U. Members States plus Norway (2005)(2006)(2007)(2008)(2009)(2010)(2011)(2012)(2013)(2014). The results indicate significant impact of the main macroeconomic variables on youth unemployment rates, total unemployment rates and shares of young people (15-24 y.o.) neither employed nor in education or training. Other variables show various levels of significance, including variables which describe labour market policies (L.M.P.s). In all estimations, public expenditure in L.M.P.s as a percentage of gross domestic product has statistically significant impact on unemployment rates, with positive coefficients. However, opposite effects have been estimated when using the number of participants in L.M.P.s and public expenditure in L.M.P.s per unemployed person, which suggests that L.M.P.s better target the general unemployed population than the vulnerable group of the unemployed youth.

Determinants of youth unemployment rate: case of Slovakia

“…On the other hand, recent studies (e.g. Brada et al, 2014;Cvecic & Sokolic, 2018;Dimian, 2011;Danacica, 2014;Kabaklarli et al, 2011;Dagume & Gyekye, 2016) have studied possible effects which education quality imposes on youth unemployment only to a limited extend and instead, these studies have focused on the highest education achieved by the youth. Nevertheless, the results of these studies indicate that the degree of highest achieved education does impact the youth unemployment rate.…”

The Impact of Portuguese Economic and Financial Assistance Program on the Employability of the Azorean Nurse after the Financial Crisis of 2009-2010

“…Precariousness is one of the known effects of recessive cycles on employment dynamics, as it has already been identified by previous research studies in this field. In the aftermath of severe economic crises and the absence of solid public policies directed to youth employability and labour integration, aiming full professional development and integration, there is a high risk of condemning the younger generations to a cycle of precariousness, professional and social devaluation, and exclusion (Gontkovicocá et al, 2015;Calvo et al, 2018;Cvecic & Sokolic, 2018). This will have a very significant and negative repercussions on society as a whole, thus, enhancing the cycle of poverty and asymmetries in income distribution (Livanos et al, 2012;Cvecic & Sokolic, 2018).…”

“…In the aftermath of severe economic crises and the absence of solid public policies directed to youth employability and labour integration, aiming full professional development and integration, there is a high risk of condemning the younger generations to a cycle of precariousness, professional and social devaluation, and exclusion (Gontkovicocá et al, 2015;Calvo et al, 2018;Cvecic & Sokolic, 2018). This will have a very significant and negative repercussions on society as a whole, thus, enhancing the cycle of poverty and asymmetries in income distribution (Livanos et al, 2012;Cvecic & Sokolic, 2018). One of the possible alternatives is to resort to emigration to escape the cycle of precariousness and poverty imposed by unemployment, especially among the youngest.…”

“…The last financial and economic crisis, as earlier stated, aggravated macroeconomic distortions such as unemployment, especially for the young and the long-term type, increasing social and income disparities, and the distribution of income (Parisi, 2017). This is even more worrisome for countries like Portugal, Ireland, Greece, and Spain who have both limited financial and demographic resources to address future economic and social challenges and prevent further deterioration (Cvecic & Sokolic, 2018). This juncture influenced young people and their position in the labour market, as many have been trying to find a job but are now threatened by the risk of prolonged joblessness and exclusion (Gontkovicocá et al, 2015;Calvo et al, 2018).…”

Genç İşsi̇zli̇ği̇ Etki̇leyen Faktörlere İli̇şki̇n Ampi̇ri̇k Bi̇r Anali̇z

“…Analiz sonucunda genç işsizlik ile kamu tarafından yapılan sosyal politikalar arasında anlamlı bir ilişkiye rastlamamıştır. Cvecic ve Sokolic (2018), 27 Avrupa Birliği ülkesinde 2005-2014 dönemi için genç işsizliği etkileyen faktörleri dinamik panel veri yöntemini kullanarak analiz etmişlerdir. Analiz sonucunda gelir, enflasyon ve eğitim seviyesinin genç işsizliği azalttığını, aktif işgücü piyasası politikaları harcamaları içerisinde yer alan kamu harcama payının artmasının ise genç işsizliği artırdığını gözlemlemişlerdir.…”