Convergence of Age Unemployment Gap: Empirical Analysis of the Second Assumption of the Law of One Unemployment Rate (LOUR)

Yosuke Uchiyama () and Fumitaka Furuoka ()
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Yosuke Uchiyama: Chulalongkorn University
Fumitaka Furuoka: University of Malaya

Chapter Chapter 4 in Youth and Employment, 2025, pp 77-103 from Springer

Abstract: Abstract This chapter is the second analytical chapter of the book. It focuses on the convergence of the age unemployment gap, which is defined as the difference in unemployment between young and older workers, in order to examine LOUR’s second assumption of “non-persistence” of the age unemployment gap. The chapter begins with the rationale for studying convergence and reviews major research studies on youth unemployment. Following this, the chapter explains the data and methods used to test LOUR’s second assumption. The findings reveal the strength and direction of convergence and highlight how cyclical conditions and institutions shape adjustments. The chapter concludes by summarising the main empirical findings and implications regarding the convergence of the age unemployment gap.

Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-95-3257-5_4

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DOI: 10.1007/978-981-95-3257-5_4

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