Youth Unemployment, Labor Market Transitions, and Scarring

Youth Unemployment, Labor Market Transitions, and Scarring
Author: Jean Farès
Publisher: World Bank Publications
Total Pages: 26
Release: 2007
Genre: Age groups
ISBN:

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Relatively little is known about youth unemployment and its lasting consequences in transition economies, despite the difficult labor market adjustment experienced by these countries over the past decade. The authors examine early unemployment spells and their longer-term effects among the youth in Bosnia and Herzegovina (BiH), where the labor market transition is made more difficult by the challenges of a post-conflict environment. They use panel data covering up to 4,800 working-age individuals over the 2001 to 2004 period. There are three main findings from their analysis. First, youth unemployment is high-about twice the national average-consistent with recent findings from the BiH labor market study. Younger workers are more likely to go into inactivity or unemployment and are also less likely to transition out of inactivity, holding other things constant. Second, initial spells of unemployment or joblessness appear to have lasting adverse effects on earnings and employment ("scarring"). But there is no evidence that the youth are at a greater risk of scarring, or suffer disproportionately worse outcomes from initial joblessness, compared with other age groups. Third, higher educational attainment is generally associated with more favorable labor market outcomes. Skilled workers are less likely to be jobless and are less likely to transition from employment into joblessness. But there is evidence that the penalty from jobless spells may also be higher for more educated workers. The authors speculate that this may be due in part to signaling or stigma, consistent with previous findings in the literature.

Youth Unemployment, Labor Market Transitions, and Scarring

Youth Unemployment, Labor Market Transitions, and Scarring
Author: Erwin R. Tiongson
Publisher:
Total Pages: 26
Release: 2016
Genre:
ISBN:

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Relatively little is known about youth unemployment and its lasting consequences in transition economies, despite the difficult labor market adjustment experienced by these countries over the past decade. The authors examine early unemployment spells and their longer-term effects among the youth in Bosnia and Herzegovina (BiH), where the labor market transition is made more difficult by the challenges of a post-conflict environment. Theyuse panel data covering up to 4,800 working-age individuals over the 2001 to 2004 period. There are three main findings from their analysis. First, youth unemployment is high-about twice the national average-consistent with recent findings from the BiH labor market study. Younger workers are more likely to go into inactivity or unemployment and are also less likely to transition out of inactivity, holding other things constant. Second, initial spells of unemployment or joblessness appear to have lasting adverse effects on earnings and employment (scarring). But there is no evidence that the youth are at a greater risk of scarring, or suffer disproportionately worse outcomes from initial joblessness, compared with other age groups. Third, higher educational attainment is generally associated with more favorable labor market outcomes. Skilled workers are less likely to be jobless and are less likely to transition from employment into joblessness. But there is evidence that the penalty from jobless spells may also be higher for more educated workers. The authors speculate that this may be due in part to signaling or stigma, consistent with previous findings in the literature.

Labor-Market Scars When Youth Unemployment is Extremely High

Labor-Market Scars When Youth Unemployment is Extremely High
Author: Nikica Mojsoska-Blazevski
Publisher:
Total Pages: 57
Release: 2018
Genre:
ISBN:

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The aim of this study is to assess how the duration of the unemployment spell of Macedonian youth affects later employment (the employment 'scarring' effect) and wage outcomes (the wage 'scarring' effect). For this purpose, we first devise a model in which the unemployment spell is determined by individual and household characteristics, and work attitudes and preferences. A discrete-time duration method is used to estimate this model. Then, we rely on standard employment and Mincer earnings functions. We repeatedly impute missing wages to address the selection of observables, and use the regional unemployment rate when the individual finished school as an instrument to mitigate the selection of unobservable. The School to Work Transition Survey 2012 is used. Results robustly suggest a presence of an employment scar as those young persons who stayed unemployed over a longer period of time were found to have lower chances of finding a job afterwards. On the other hand, the study does not provide evidence for the existence of a wage scar.

Labor-Market Scars When Youth Unemployment is Extremely High

Labor-Market Scars When Youth Unemployment is Extremely High
Author: Marjan Petreski
Publisher:
Total Pages: 46
Release: 2016
Genre:
ISBN:

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The objective of this study is to assess how the duration of the unemployment spell of Macedonia youth affects later employment (the employment 'scarring' effect) and wage outcomes (the wage 'scarring' effect). To that end, we first devise a model in which the unemployment spell is determined by individual and household characteristics and work attitudes and preferences. Discrete-time duration method is used to estimate this model. Then, we rely on a standard employment and Mincer earnings functions.We repeatedly impute missing wages to address the selection on observables, and use the regional unemployment rate when individual finished school as an instrument to mitigate the selection on unobservables. The School to Work Transition Survey 2012 is used. Results robustly suggest a presence of employment scar as those young persons who stay unemployed over a longer period of time were found to have lower chances to find a job afterwards. On the other hand, the study does not provide evidence for the existence of the wage scar.

The Youth Experience Gap

The Youth Experience Gap
Author: Francesco Pastore
Publisher: Springer
Total Pages: 76
Release: 2014-08-25
Genre: Business & Economics
ISBN: 331910196X

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“The education to work transition of young people is key to a successful work-life and to fight youth unemployment. The book provides an impressive outline of the facts and convincing insights of the potential causes. This offers a large and broader audience help to adjust properly to achieve a better life.” Klaus F. Zimmermann, IZA, Bonn, Germany This work points to the youth experience gap as a key concept to explain the meager employment opportunities and earnings many young people face.The transition from education to work remains a long dark tunnel around the world. However, this book shows that there are striking differences between countries: in Germany, the young people of today are no worse off than their adult counterparts, while in Southern European and Eastern European countries they fare 3 through 4 times worse. The current economic and financial crisis has further exacerbated the situation for young people in many advanced economies. Observers are divided as to the optimal design of youth employment policy. Liberalists believe that the market itself should address youth disadvantages. More flexible labor markets should also guarantee greater labor turnover, including temporary work, so as to allow young people to move from one job to the next until they accumulate the work experience they need to become more employable and find the right career. In contrast, other economists oppose approaches focusing on entry flexibility and temporary work, claiming that the former type helps only the most skilled and motivated target groups, while the latter only allows young people to gather generic, not job-specific work experience.

Youth Unemployment and Job Insecurity in Europe

Youth Unemployment and Job Insecurity in Europe
Author: Bjørn Hvinden
Publisher: Edward Elgar Publishing
Total Pages: 272
Release: 2019
Genre:
ISBN: 1788118898

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Providing original insights into the factors causing early job insecurity in European countries, this book examines its short- and long-term consequences. It assesses public policies seeking to diminish the risks to young people facing prolonged job insecurity and reduce the severity of these impacts. Based on the findings of a major study across nine European countries, this book examines the diverse strategies that countries across the continent use to help young people overcome employment barriers.

The Lingering Crisis of Youth Unemployment

The Lingering Crisis of Youth Unemployment
Author: Arvil V. Adams
Publisher: Kalamazoo, Mich. : W. E. Upjohn Institute for Employment Research
Total Pages: 184
Release: 1978
Genre: Business & Economics
ISBN:

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Monograph analyzing trends in youth unemployment in the USA - examines economic implications and social costs of unemployment among dropouts and school leavers, finds that educational level and vocational training have a positive effect upon the employment and wages of youth regardless of race and sex, and stresses the urgency of employment creation, especially for Black youths and girls. Bibliography pp. 143 to 152 and statistical tables.

Tackling Youth Unemployment

Tackling Youth Unemployment
Author: Francesca Fazio
Publisher: Cambridge Scholars Publishing
Total Pages: 435
Release: 2014-03-17
Genre: Law
ISBN: 1443857866

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Youth have always had higher unemployment rates – about twice or more than the average – as they are usually the last to be hired in an expansion and the first to be let go in a recession. In addition, young people engage in extensive job searching in their early years, and this can imply considerable job churning as both youth and employers look for a good match. This highlights the importance of facilitating the school-to-work transition and having early interventions to assist such youth before negative conditions set in. It also highlights the potential importance of determining those young people most “at risk” of long-term unemployment, and of targeting or streaming them into programmes that will yield the largest incremental net benefits given their characteristics. Unemployed youth without previous work experience often are not eligible for unemployment insurance benefits when they first enter the labour market. When they do receive job search assistance, they often face a bewildering array of programmes that are available to assist them, often with little guidance to help them select the programs that best meet their needs. Consequently, ensuring that today’s youth do not become a “lost generation” is an urgent matter. George Bernard Shaw once said that it is too bad that “youth is wasted on the young”, implying that youth do not realize the opportunities they have as youth and only see them as they get older. There is a danger, however, that many of today’s youth may be never have those opportunities and hence not even see them with hindsight. This book and others in the ADAPT Labour Studies Book-Series are intended to deal with these challenges, to make sure that youth is not wasted on the young.