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