Youth Unemployment in the OECD: The Role of Institutions

Abstract

Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW. employees but might harm (young) entrants. Remarkable is especially the significant and very high effect of employment protection for regular jobs on youth unemployment. In addition, the combined effects of powerful unions and a coordinated wage bargaining system are beneficial for older people and detrimental to youth. Finally, the paper establishes significant labor supply effects and effects of the education system on youth and total unemployment.JEL classification: E02, E24, J21, J68

Employment effects of skills around the world: Evidence from the PIAAC

“…However, unemployment is the result of various complex processes. A prominent strand of the literature studies how a country's unemployment rate is affected by its institutions, including social security, employment protection, minimum wage, unionization and product market regulation (see, for example, Nickell and Layard, 1999;Belot and van Ours, 2004;Arpaia and Mourre, 2012;Boeri, Conde-Ruiz and Galasso, 2012;Sachs and Smolny, 2015;Launov and Wälde, 2016). In order to investigate the role of regional conditions more rigorously, I simultaneously regress the estimated effects of numeracy skills on the Employment effects of skills 323 probability of being inactive, ∂Pr(inactivity)/∂numeracy, and the probability of being unemployed, ∂Pr(unemployment)/∂numeracy, on a set of country characteristics, x i , in a seemingly unrelated regressions set-up à la Zellner (1962).…”

Effets des compétences sur l’emploi: les enseignements de l’Évaluation des compétences des adultes (PIAAC)

“…Toutefois, le chômage est le résultat de toute une diversité de processus complexes. Un courant de pensée important s'attache à comprendre de quelle façon le taux de chômage d'un pays est affecté par ses institutions: sécurité sociale, protection de l'emploi, salaire minimum, syndicalisation et réglementation du marché des produits (voir, par exemple, Nickell et Layard, 1999;Belot et van Ours, 2004;Arpaia et Mourre, 2012;Boeri, Conde-Ruiz et Galasso, 2012;Sachs et Smolny, 2015;Launov et Wälde, 2016). Pour examiner l'influence de la situation régionale de façon plus rigoureuse, nous avons calculé en parallèle deux équations de La spécification 1 du tableau 4 correspond au diagramme de dispersion bivarié de la figure 4.2.…”

The Impact of Quality Foundational Skills on Youth Employment in Africa: Does Institutional Quality Matter?

“…Some countries have therefore created or reinforced an institutional framework to support entry into the labour market. The major concern then is the strength and quality of such institutions (Baccaro & Rei 2007;Sachs & Smolny 2015).…”