Active labour market policies for young people and youth unemployment

2019 ◽  
Vol 40 (8) ◽  
pp. 1510-1534 ◽  
Author(s):  
Stefan Sonke Speckesser ◽  
Francisco Jose Gonzalez Carreras ◽  
Laura Kirchner Sala

Purpose The purpose of this paper is to provide quantitative estimates on the impact of active labour market policy (ALMP) on youth unemployment in Europe based on a macroeconomic panel data set of youth unemployment, ALMP and education policy variables and further country-specific characteristics on labour market institutions and the broader demographic and macroeconomic environment for all EU-Member States. Design/methodology/approach The authors follow the design of an aggregate impact analysis, which aims to explain the impact of policy on macroeconomic variables like youth employment and unemployment (see Bellmann and Jackman, 1996). This follows the assumption that programmes, which are effective in terms of improving individual employment opportunities, are going to make a difference on the equilibrium of youth unemployment. Findings The findings show that both wage subsidies and job creation are reducing aggregate youth unemployment, which is in contrast to some of the surveys of microeconomic studies indicating that job creation schemes are not effective. This finding points towards the importance to assist young people making valuable work experience, which is a benefit from job creation, even if this experience is made outside regular employment and/or the commercial sector. Research limitations/implications In terms of the variables to model public policy intervention in the youth labour market, only few indicators exist, which are consistently available for all EU-Member States, despite much more interest and research aiming to provide an exhaustive picture of the youth labour market in Europe. The only consistently available measures are spending on ALMP as a percentage of gross domestic product (in the different programmes) and participation stocks and entries by type of intervention. Practical implications The different effects found for the 15–19 year olds, who seem to benefit from wage subsidies, compared to the effect of job creations benefitting the 20–24 year olds, might relate to the different barriers for both groups to find employment. Job creation programmes seem to offer this group an alternative mechanism to gain valuable work experience outside the commercial sector, which could help form a narrative of positive labour market experience. In this way, job creation should be looked more positively at when further developing ALMP provision, especially for young people relatively more distant to engagement in regular employment. Social implications Improving the situation of many millions of young Europeans failing to find gainful employment, and more generally suffering from deprivation and social exclusion, has been identified as a clear priority for policy both at the national level of EU-Member States and for EU-wide initiatives. With this study, the authors attempt to contribute to the debate about the effectiveness of policies which combat youth unemployment by estimating the quantitative relationship of ALMP and other institutional features and youth unemployment. Originality/value To research the relationship between youth unemployment and ALMP, the authors created a macroeconomic database with repeated observations for all EU-Member States for a time series (1998–2012). The authors include variables on country demographics and the state of the economy as well as variables describing the labour market regimes from Eurostat, i.e. the flexibility of the labour market (part-time work and fixed-term employment as a percentage of total employment) and the wage setting system (level and coordination of bargaining and government intervention in wage bargaining).


Author(s):  
Dejana Pavlović ◽  
Ivana S. Domazet ◽  
Milena Lazić

The high rate of youth unemployment is an issue that is largely present in developing countries, such as Serbia. The results of the research will provide a major contribution whether education has an impact on the labour market among young people in Serbia. Decision tree was performed to identify impact constructs. In order to define public policies, an insight is provided into the characteristics of young people that largely contribute to the probability of being employed. The results showed that education has an impact on youth unemployment. Results of the research will be useful for decision makers in the implementation of a strategic model of the labour market. Theoretical and practical implications are discussed in the paper.



2019 ◽  
Vol 42 (9) ◽  
pp. 1095-1115 ◽  
Author(s):  
Ioannis Koliousis ◽  
Dongmei Cao ◽  
Panagiotis Koliousis

Purpose This paper aims to examine the impact of deregulation on the European transport industry in the form of privatization, on the managerial efficiency of a panel of deregulated transport companies. Design/methodology/approach This research examines a data set of 25 deregulated transport companies from a sample of 12 EU nations from 1988 to 2015. Some studies have analyzed deregulation by using non-parametric models. However, only a limited number of studies focus on the impact of deregulation on the managerial efficiency. This study answers two questions: whether deregulation, in the form of privatization, in the transport sector has any effect on the managerial efficiency, on the profitability and on the investment decisions of the firm, and whether this premise is robust enough across the European transport industry. This study formulates a multivariate regression framework utilizing data from major privatized European transport companies. The final panel includes 25 companies, from 12 EU - Member States for the period 1988-2015, equaling 375 firm-year observations based on a rigorous selection methodology. Findings The study confirms that transport companies, post-privatization, are more efficient regarding operating efficiency and profitability. The authors find no evidence that deregulation improves investment efficiency. Social implications The study addresses the regulators’ dilemma, whether to deregulate, by focusing on analyzing the improvement of the managerial efficiency. Originality/value This study contributes to the transport industry management literature in three ways. First, the authors update the literature of the economic theory of regulation with an empirical examination which covers the latest years across the EU Member States. Second, the authors introduce a comparison of the effects of deregulation on different components of the managerial efficiency, namely, investment, profitability and operating efficiency of the incumbents in the EU transport industry. Third, they examine deregulation by using two approaches: a traditional one where deregulation is a dummy variable assessing the overall effect on incumbents’ efficiency performance; and a novel approach where the Organisation for Economic Co-operation and Development’s deregulation index is used to measure the regulation intensity, accounting also for industry-wide impact assessment. This two-sided approach increases the robustness of the results.



2018 ◽  
pp. 59-90

This chapter examines countries' performance regarding youth unemployment. Although the labour market situation of young people has started to improve in a number of countries since the Great Recession of 2007–8, youth unemployment still remains very high across Europe. High youth unemployment rates reflect young people's difficulties in securing employment, or the inefficiency of the labour market. Germany and the Netherlands have established the most effective institutions to achieve a high integration of 15–19 year-olds in education and employment. Indeed, both Germany and the Netherlands are amongst the highest performing countries in the EU for making sure their young people are in employment. Austria and Denmark also achieve good youth labour market and employment outcomes. Meanwhile, countries like France and the UK try to facilitate school-to-work (STW) transitions by lowering labour costs through subsidies or low employment protection.



2016 ◽  
Vol 10 (3) ◽  
pp. 207-220 ◽  
Author(s):  
Stephen Beyer ◽  
Andrea Meek ◽  
Amy Davies

Purpose – The Real Opportunities project set out to implement a number of the approaches identified through research that can assist transition to adulthood in nine local authority areas in Wales. Supported work experience was delivered by small job coaching teams in each area. The purpose of this paper is to establish the impact of the work experience and employment teams by describing the placements provided, any change in the skills of young people, and the responses to the placements by employers, young people and their families. Design/methodology/approach – Data were collected over 24 months by participating employment services. Questionnaires were administered to employers. Interviews were carried out with a sub-sample of young people (24) participating and a family member (25). Findings – Over a 24-month period 297 young people received supported work experience. In total, 262 young people had an intellectual disability, 35 an autistic spectrum disorder. Up to three placements were delivered to each person, averaging five weeks per placement, with 405 placements in total. In total, 62 per cent of those with two placements had a different category of second work placement to their first. These numbers demonstrated that work experience in community placements is possible with support. Young people improved work skills significantly between first and second placements. Employers reported high satisfaction rates with the young person’s work in a range of key performance areas and company benefits from participation for other staff, company image and customer relations. Interviews with 24 young people and 25 of their family members reported satisfaction with support and placements. Six young people had paid work now, and 33 per cent said they would get a job at some future time. Families reported changes in young person’s outlook but their view of prospects of employment remained pessimistic due to the external environment. Research limitations/implications – Implications for future research are discussed. Practical implications – Implications for transition are discussed. Originality/value – The paper provides new insight into the impact of a large number of supported work experience placements.



2019 ◽  
Vol 40 (3) ◽  
pp. 379-397 ◽  
Author(s):  
Gabriella Berloffa ◽  
Eleonora Matteazzi ◽  
Alina Şandor ◽  
Paola Villa

Purpose The purpose of this paper is to investigate gender differences in employment status trajectories of young Europeans during their initial labour market experience, and the way in which they are affected by some labour market institutions. Design/methodology/approach The empirical analysis is based on EU-SILC longitudinal data (waves 2006–2012), and focusses on young people aged 16–34. Monthly information on self-declared employment statuses for 36 months is used to define “employment status trajectories”. Young people are observed in two different phases: the first three years after leaving education (first phase) and a three-year window, starting around four years after the end of education (2nd phase). Multinomial logit models are used to estimate the probability of following different trajectory types as a function of individual characteristics, macroeconomic conditions and institutional indicators. Findings Results show that, in the first phase, women and men face on average the same difficulties in entering the labour market. When controlling for the presence of children, non-mothers have higher chances than men to enter rapidly and successfully into the labour market, whereas young mothers have the same chances. In contrast, in the second phase women experience more fragmented pathways than men, even if they do not have children. A less stringent regulation on dismissals of employees with regular contracts could enhance women’s employment opportunities in the school-to-work transition, but it would have detrimental effects for both men and women in the subsequent years. On the contrary, a more stringent regulation on the use of temporary contracts would have beneficial effects for women, with no adverse effects for men. Originality/value The paper contributes to the literature in several ways. First, it takes a broader perspective on youth labour market integration by considering two phases of individuals’ initial working life. Second, it combines an explicit attention to the first “significant” employment experience with a focus on individual trajectories, by adopting a new method to group trajectories. Third, it shows how the effects of labour market institutions vary by gender, highlighting the importance of considering gender-specific consequences when discussing or adopting labour market reforms.



2020 ◽  
Vol 9 (2) ◽  
pp. 349-365
Author(s):  
Viktoriia DRUZHYNINA ◽  
Yuliia VIEDIENINA ◽  
Lesia SAKUN ◽  
Ganna LIKHONOSOVA

The multiple analysis of rate of dependency between innovative processes and structural labour market changes in the form of evolution in sector of employment was exposed in the article. It has been proved that the impact of innovations on the labour market can be considered, on the one hand, as a part of multi-factor socio-economic macro-, meso-, micro-level systems, which makes a direct or indirect impact on state of other elements of system and which is under its influence at this time; on the other hand, as an open, dynamic, flexible system, functioning of which leads to socio-economic resources development. The definition of labour market has been suggested as a system of socio-economic relations between workers, employers and society (organizations and institutes) for realization of ability to work, supporting social guarantees, approximation of parties’ interests of labour relations, state`s interests, legal control of terms of employment etc. The analysis of structural changes, which take place in the labour market of different levels administrative territorial state`s structure by means of innovations, covers the period 2012-2017. The impact of innovations on employment is associated with `creative destruction` where innovations, on the one hand, ruin current workplaces and, on the other hand, create new ones. Analysis has demonstrated that employment increasing and related structural improvements are determined by kind of incorporated innovations. Organizational innovations have more impact on size and structure of employment, than technological ones. The practical importance of the research involves developing of methodological and practical aspects of choosing multiple approach in relation to innovation analysis as a determinant of structural labour market changes. The originality of the research is reflected in the comprehensive creative analysis of innovations from the point of view of activation of the youth labour market in Ukraine. The key factors of the low level of involvement of young citizens in the country's economy and society are identified. The authors have suggested the prospects for the development of the youth labour market, the elimination of youth unemployment, which are conditioned by the peculiarities of the social condition and employment behaviour of young people. The need to study the experience of European countries is emphasized, where training in the working professions is well organized and the youth unemployment rate is the lowest in Europe. Distinctiveness. Conducted researches let to confirm attained results in relation to choosing implements for coping with current troubles and disproportions in society. Implementation of multiply approach of analysis and diagnostics of correlation of innovations and employment will make a direct impact on supporting living standards and progressive socio-economic state`s development. The monitoring of solidarity of actions of public communities, government agencies, enterprise structures will ensure attainment of active increasing of innovation technologies, high living standards level, that will offer some new opportunities for business environment in relation to labour productiveness maintaining method and equivalent income level from enterprise activity, will solve the unemployment and labour migration issues, create some new flexible forms of employment, increase the level of state`s competitiveness in global economy facilities. Key Words: creative analysing, diagnostics, employment of population, innovations, multiple approach



Significance In much of the world, COVID-19 has exacted a heavy toll on young people, who saw their education disrupted and were frequently the first victims of the impact on labour markets. However, young Brazilians were hit especially hard as long-underperforming schools remained closed for longer than in most other countries. Moreover, pre-pandemic youth employment had not recovered from the deep 2015-16 recession. Impacts Demographic and labour-market trends will increase pension and healthcare costs while reducing productivity. A growing brain drain will further affect the country’s prospects in the coming years. Society and the economy will feel the impact of COVID-19 on education for decades.



Subject Job-creation under Prime Minister Narendra Modi's administration. Significance Following his 2014 general election victory, Prime Minister Narendra Modi pledged to create millions of jobs and modernise the labour market. However, jobs in eight key employment sectors increased by only 32,000 in the third quarter of 2016-17, marking five years of steady decline in the rate of employment growth. Impacts India’s labour market is deeply distorted but no solutions are forthcoming. Youth unemployment risks violent protests, especially over public sector jobs reserved for marginalised groups. Patriarchal constraints will impede women’s participation in the paid workforce.



Author(s):  
David Rea ◽  
Paul Callister

This paper investigates the changing nature of young peoples' transition into the labour market over the last 30 years. The paper uses census data from 1976 to 2006 to compare the experiences of cohorts of young people born in New Zealand. A range of outcomes are analysed including living with parents, participation in education, employment, partnering, having children and migration. We find that transitions into the labour market have changed considerably over the last 30 years. We also find that the cohorts of young people born in the late 1960s and early 1970s experienced somewhat different outcomes compared to both the preceding as well as later cohorts. We attribute this to the fact that these cohorts entered the labour market in the late 1980s and early 1990s at a time of high overall unemployment. Our findings have important policy implications, particularly given the current recession and rising rates of youth unemployment.



2017 ◽  
Vol 34 (1) ◽  
pp. 22-41 ◽  
Author(s):  
Jennifer Shore ◽  
Jale Tosun

While youth unemployment is a widely studied topic, many accounts fail to take into consideration young adults’ experiences with and perceptions of the public services they make use of. Young people’s perceptions of the services they use are closely linked to a variety of behaviours such as noncompliance, early withdrawal or non-take-up, all of which can hinder the (re-)entry to the labour market. How young people evaluate their interactions with employment services can even have impacts on societal and political attitudes; as for many young people, these experiences represent their first interactions with the state. In this study, we draw on unique survey data to offer insights into young adults’ evaluations and experiences with public employment services in Germany and discuss them in light of the structure and organizational capacity of public employment services to deliver the programmes and services that young adults need. By placing the analytical focus on young people’s evaluations, we argue that although Germany is often highlighted as a highly successful case in terms of youth labour market outcomes; there is nevertheless ample room for improvement in terms of how young people assess the offerings and personal experiences with public employment services.



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