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Unemployment and education mismatch in the EU before and after the financial crisis

Fabrizio Pompei and Ekaterina Selezneva

Journal of Policy Modeling, 2021, vol. 43, issue 2, 448-473

Abstract: This paper investigates whether general formal education still helps youth avoid situations of unemployment and inactivity in favour of other labour force statuses (dependent employment, self-employment, education) across EU countries over the period 2006–2010. In a second step, we analyse whether the relationship between education and the labour statuses above is affected by different degrees of country-level education mismatch. Our results show that after the outbreak of the crisis and in countries with high educational mismatch there is an additional reduction in unemployment risk for highly educated people that is accompanied by a higher probability of being an employee than of remaining in education.

Keywords: Youth unemployment; Education mismatch; Multinomial logit model; Multilevel analysis (search for similar items in EconPapers)
JEL-codes: I20 J24 Z13 (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1016/j.jpolmod.2019.09.009

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