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Youth Unemployment in Europe – Appraisal and Policy Options

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The alarming rise of youth unemployment rates following the recent economic turmoil has challenged national as well as European labour market policies. With more than 5.5 million young people in the EU struggling to find jobs, there is an urgent need to develop strategies for combatting youth unemployment, in order to avoid a lost generation of European youths threatened by lasting disadvantages in terms of labour market and social position. Against this background, the Robert Bosch Stiftung has commissioned the present study from the Centre for European Economic Research (ZEW) in Mannheim. Its aims are to survey the development of youth unemployment in Europe, to identify the relevant institutional and economic drivers and to discuss the necessary courses of action to achieve a better integration of young adults into the labour market. While the study covers the perspective of the EU member states as a whole, it strongly focusses on southern European countries, which are especially suffering from the current youth unemployment crisis. Its core part is comprised of three country reports which detail the situation in Italy, Spain and Portugal, and review current and potential future policy initiatives that could help in reducing youth unemployment.
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... The successive crises contribute to the deteriorating situation of the youngest participants of the labor market. At the macroeconomic level, failing to integrate the young generation implies a loss of production, productivity and probably also innovation potential (Berlingieri et al. 2014). The situation of young people depends strongly on the processes of globalization, the supply of jobs, qualifications and, obviously, periods of economic prosperity. ...
... It has recorded a particularly strong increase in youth unemployment rate. According to (Berlingieri et al. 2014) in Spain the transition rate into permanent jobs is very low. This is the result of high employment protection of permanent workers and the liberalization of the use of temporary contracts in the nineties. ...
... Especially that the conducted analyses confirm that not only low-qualified young workers face the problem in entering the labor market. The difficulties among young people with integrating into the labor market are the reflection of skills mismatch and spatial mismatch (Berlingieri et al. 2014), (Bal-Domańska and Sobczak 2018). The Pompei and Selezneva 2019 results show that after the outbreak of the crisis and in countries with high education mismatch, there is an additional reduction in unemployment risk for highly educated people. ...
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The presented article follows the research mainstream of econometric analyses focused on the assessment of correlations between youth unemployment rate and market and macroeconomic determinants, including economic growth and productivity of the economy, its structure in terms of NACE Rev.2 sections as well as the labor market tools. The research addresses 28 European Union (EU) countries. The analysis period covers the years 2008–2018. The econometric methods dedicated to panel data were used. The research results confirm the importance of the general economic condition as well as the development of knowledge-based economy for the improvement of the youth situation in the labor market. With regard to the economy structure, the development of manufacturing section importance turned out to be a major factor in female youth unemployment rate reduction. The growing importance of the construction sector translated into a decline in the unemployment rate among young men.
... De fet, la literatura ha destacat els bons resultats obtinguts en aquells programes en què es dóna una orientació i assessorament personalitzat als joves (Berlingieri et al., 2014;Caliendo i Schmidl, 2016;Heyes, 2014;Wulfgramm i Fervers, 2015). També s'ha destacat l'èxit obtingut en aquelles mesures en què la seva aplicació es fa a mida de les necessitats de cada jove (tailored support), tant en relació amb les seves característiques sociodemogràfiques com en relació amb les seves circumstàncies personals (Berlingieri et al., 2014;Kluve et al., 2016). ...
... De fet, la literatura ha destacat els bons resultats obtinguts en aquells programes en què es dóna una orientació i assessorament personalitzat als joves (Berlingieri et al., 2014;Caliendo i Schmidl, 2016;Heyes, 2014;Wulfgramm i Fervers, 2015). També s'ha destacat l'èxit obtingut en aquelles mesures en què la seva aplicació es fa a mida de les necessitats de cada jove (tailored support), tant en relació amb les seves característiques sociodemogràfiques com en relació amb les seves circumstàncies personals (Berlingieri et al., 2014;Kluve et al., 2016). D'altra banda, la literatura també destaca l'èxit dels programes comprensius i de caràcter multidimensional, que impliquen una combinació i articulació flexible de diferents mesures orientades a superar la situació d'atur (Kluve, 2014;Kluve et al., 2016;Martin i Grubb, 2001). ...
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... The services sector affects the economic growth directly through its increasing contribution to the output, employment and trade and indirectly through productivity growth and creating linkages with other parts of the economy (Baumol, 1967;Clark, 1940;Fisher, 1935). In servicesbased economies, services are not used only as final product but also as an intermediate input that is used to link different economic activities and make the economy function smoothly (Berlingieri et al., 2014). The growing importance of services sector and its impact on different parts of the economy has made this sector as the primary source of growth and job creation even in developing countries (Ghani and O'Connell, 2014). ...
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... Particularly in the context of high youth unemployment in other European countries, the German youth labor market has been perceived as a role model (Berlingieri et al., 2014;OECD, 2014). Low youth unemployment and smooth labor market integration of youth are observed and credited to the dual vocational education system. ...
Thesis
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... In some Southern European countries, more than half of all young adults are unemployed, a situation that was made even worse by the last financial crisis. This entails problems of a psychosocial nature, but can also have devastating consequences for the countries concerned-and the European Union itself [7] in a post-Brexit context, due to the social tensions that can arise from unemployment. In Spain, in particular, youth unemployment rates double those of the adult population and affect more than half of the population [8]. ...
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