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Decomposition of trends in youth unemployment – the role of job accessions and separations in countries with different employment protection regimes

Anna Baranowska-Rataj () and Iga Magda

No 53, Working Papers from Institute of Statistics and Demography, Warsaw School of Economics

Abstract: We examine the drivers of youth unemployment in Poland and Spain, countries where youth have a marginalised labour market position. We decompose the trends in unemployment rates in 1990-2011. We disentangle the role of prolonging job search and the impact of dismissals. The contribution of these two factors to the changes in unemployment rates is compared between youth and the reference group of prime-age workers. We show that in both countries, youth had actually higher chances of finding jobs than the prime-age workers during last two decades. However, the probability of job separation among youth was persistently higher. Moreover, the youth job separation risk reacted to recessions much stronger than the prime-age group risk. In Poland the disparity between the impact of job dismissals on changes in unemployment rates among young and prime-age men is relatively lower than in Spain, which could be ascribed to countries’ differential employment protection regimes.

Keywords: unemployment; job flows; job separations; segmented labour markets (search for similar items in EconPapers)
JEL-codes: J21 J42 J63 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2013
New Economics Papers: this item is included in nep-eec and nep-eur
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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