Youth unemployment policy

Author(s):  
James Levinsohn
2004 ◽  
Vol 33 (1) ◽  
pp. 3-25 ◽  
Author(s):  
FRANS MEIJERS ◽  
KITTY TE RIELE

Youth unemployment is an issue that has increasingly troubled western countries since the 1970s. This paper provides data on youth unemployment in Australia and the Netherlands, and discusses government policy in both countries. The rate of youth unemployment was similar in both countries in the mid 1980s, but since then it has declined dramatically in the Netherlands, while changing little in Australia. Youth unemployment policy in Australia has been driven by the concept of obligation, while in the Netherlands youth unemployment policy has been organised around the principle of a guarantee for youth. The Dutch labour market programme offers more continuity and coherence than the rather ad hoc Australian programmes. However, the paper argues that youth labour market policy in both countries is of a controlling nature, and does not serve marginalised youth. Moreover, policy in neither country meets OECD criteria for effective labour market programs. The paper concludes with the description of a Dutch program which, to a large extent, does meet the OECD criteria, and demonstrates that a more constructive approach to youth unemployment is possible.


2015 ◽  
Vol 15 (2) ◽  
pp. 179-195 ◽  
Author(s):  
Vladislav Flek ◽  
Martina Mysíková

Abstract Using Spain and the Czech Republic as examples of two EU countries with different labour market performance, we apply a gross flow analysis based on EU-SILC longitudinal data. We find that while in Spain the increases in youth unemployment are driven mostly by young people who lose their jobs, in the Czech Republic, this is mainly due to new labour market entrants who failed to find a job. The analysis of flow transition rates suggests that youth labour markets with enormously high unemployment rates have not failed in all relevant respects. Their development seems to be hindered predominantly by high risk of job losses and diminishing employment prospects of the unemployed, rather than by impeded transitions from inactivity to employment. In countries with lower youth unemployment rates, unemployment policy agenda appears to be challenged by quite the opposite tendency


1994 ◽  
Vol 5 (1) ◽  
pp. 21-29
Author(s):  
David Plowman

There has been an increase in the rate of youth unemployment since the 1960s. Initially this increase was masked by the increased number staying on in the education system and the resultant drop in the participation rate for the under 20 age group. It is contended that the compression of youth/adult wage relativities since the 1970s has affected both the demand and supply for young workers. Demand has dropped since the experience premium attached to adult wages has been reduced. In the context of unemployed adult workers, the latter will be preferred to younger workers and new entrants to the labour market. On the supply side increased relative wages have induced more young workers into the labour force, increased the participation rate for this age group, and thus further increased the rate of unemployment. The persistence of this problem over time has given rise to relatively high levels of long-term youth unemployment Policy options to remedy this social and economic problem are necessarily constrained. On the industrial relations front a constraint is trade union antipathy to youth wage reduction policies which could give rise to generalised wage reductions. This paper proposes the extension of the special provisions of awards which permit for reduced payments as a means of assuaging union concerns.


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