Youth unemployment in transition economies

Signorelli, Marcello

doi:10.15185/izawol.401

Cited by 5 publications

(1 citation statement)

References 5 publications

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“…In addition, the growing specialization in agriculture could offer higher employment opportunities for young women. That is, the primary sector (agriculture) seems able to absorb some excess female youth labor supply (Signorelli, 2017). Rural youth, therefore, have lower reservation wages and are less willing to wait for better job opportunities in the downward economy (Briones, 2019).…”

Section: Resultsmentioning

confidence: 99%

Does gender matter for the unemployment hysteresis effect among Asian countries?

Tao

2021

IJM

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PurposeThis study aims to examine the unemployment hysteresis effects from the perspective of the heterogeneity of genders within Asian countries.Design/methodology/approachThe authors use the annual unemployment rate dataset of 12 Asian countries ranging from 1991–2020. Traditional unit root tests are initially employed to investigate the unemployment hysteresis effect. Considering the structural break and cross-section dependence problems, the sequential panel selection method (SPSM) and the Kapetanios–Snell–Shin (KSS) panel unit root test with Fourier functions have proven to be more applicable.FindingsThe empirical results indicate that the unemployment rate is stationary in most Asian regions for both females and males, which confirms the mean reversion process of the natural unemployment hypothesis. This suggests that these countries' unemployment rates are flexible to quickly revert to its long-run equilibrium determined by the labor markets. However, only the female unemployment rate in Pakistan and Nepal and adult female unemployment rates in these two economies present non-stationary series. In line with the unemployment hysteresis effect, it means shocks will leave a permanent impact on their labor market.Practical implicationsOn the one hand, in most of the Asian countries, it can be inferred that the trade-off between inflation and unemployment is temporary because the natural unemployment hypothesis holds. Therefore, policymakers may consider using monetary policy as a tool to control inflation and stimulate growth during a recession. Such policy measures should not have a long-run impact on unemployment or cause a permanent shift in the natural unemployment rate. On the other hand, the government should implement active labor protective programs such as education or training schemes, job search assistance programs and maternity protection, especially for female adults, to reduce the negative shocks in the economic downturn, which is beneficial for them away from being long-term unemployed. It is also necessary to improve the labor unions to reduce the discrimination between female and male labors.Originality/valueThis paper innovatively concentrates on the heterogeneity performances between genders about the unemployment hysteresis effect within Asian countries. Furthermore, taking into account the age-specific characteristics, the youth and adult unemployment rates have been investigated. Additionally, the approximation of bootstrap distribution and the advanced panel KSS unit root test with a Fourier function are employed. Thereby, targeted policies for the government can be applied to reduce the discrimination and negative shocks on female adults in the labor market.

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Section: Resultsmentioning

confidence: 99%

Does gender matter for the unemployment hysteresis effect among Asian countries?

Tao

2021

IJM

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Determinants of Public Debt Dynamics in Transition and Post-Transition Economies

Carrasco,

Tovar-García

2024

Eastern European Economics

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Teknolojik Değişme ve İstihdam Arasındaki Dinamik İlişki: Genç İstihdamı ile Toplam İstihdamın Panel VAR ve Nedensellik Analizleri ile Karşılaştırılması

Gorkey

2022

Sosyoekonomi

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This study empirically examines the relationship and causality between technological change and employment by comparing youth and total employment. It covers data from 16 OECD economies from 1985 to 2018 and uses multifactor productivity (MFP) as a proxy for technological change. The findings from the general method of moments panel vector autoregression (GMM Panel-VAR) approach indicate significant and positive effects of MFP on youth and total employment, and a significant yet negative impact of youth employment on MFP. According to Panel-VAR-Granger-Causality analysis results, there is a two-way causality between MFP and youth employment and a one-way causality from MFP to total employment. Thus, this study empirically confirms the job-creation effect of technology and finds out that the technological change and employment nexus differs for youth employment compared to that for total employment.

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Youth unemployment in transition economies

Cited by 5 publications

References 5 publications

Does gender matter for the unemployment hysteresis effect among Asian countries?

Does gender matter for the unemployment hysteresis effect among Asian countries?

Determinants of Public Debt Dynamics in Transition and Post-Transition Economies

Teknolojik Değişme ve İstihdam Arasındaki Dinamik İlişki: Genç İstihdamı ile Toplam İstihdamın Panel VAR ve Nedensellik Analizleri ile Karşılaştırılması

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