Youth unemployment in the OECD: The role of institutions

Andreas Sachs and Werner Smolny

No 14-080, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: This paper analyzes the role of labor market institutions for youth unemployment, as contrasted to total unemployment. The empirical results are basically consistent with an insider view of labor market institutions. Labor market institutions tend to protect (older) 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.

Keywords: Youth unemployment; labor market institutions; age-specific unemployment (search for similar items in EconPapers)
JEL-codes: E02 E24 J21 J68 (search for similar items in EconPapers)
Date: 2014
New Economics Papers: this item is included in nep-lab, nep-ltv and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Youth Unemployment in the OECD: The Role of Institutions (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:zewdip:14080

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