The Effect of Digitalization on Youth Unemployment for EU Countries: Treat or Threat?

Oğuz Başol (), Hüseyin Sevgi and Esin Cumhur Yalçın
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Oğuz Başol: Department of Labor Economics and Industrial Relations, Kırklareli University, Kırklareli 39100, Turkey
Hüseyin Sevgi: Department of Labor Economics and Industrial Relations, Kırklareli University, Kırklareli 39100, Turkey
Esin Cumhur Yalçın: Department of Econometrics, Kırklareli University, Kırklareli 39100, Turkey

Sustainability, 2023, vol. 15, issue 14, 1-15

Abstract: Unemployment affects approximately 73 million young people, representing 17.9% of the global youth workforce in 2022. Although there are several policies to prevent youth unemployment, digitalization seems to be one of the strongest. This research focuses on the impact of the Digital Economy and Society Index (DESI) on youth unemployment in 27 European countries from 2018 to 2021. For the research, the “Digital Economy and Society Index” was measured with four sub-dimensions. These were “connectivity”, “digital public services”, “human capital”, and “digital technology integration”. Additionally, “Youth Unemployment” was measured with three sub-dimensions. These included the “long-term youth unemployment rate”, “not in education, employment, or training rate”, and “youth unemployment rate”. The analyses were conducted using SmartPLS 4 and the results showed that the DESI reduces youth unemployment each year. According to the findings, the indicators of DESI can be an effective strategy for combating youth unemployment in European countries.

Keywords: digitalization; youth unemployment; long-term youth unemployment; SmartPLS (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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