In the recent years the professional situation of young people (aged 15–24) compared to that of older age groups (referred to as adults) has deteriorated. In 2020 the unemployment rate among young people in 23 European Union countries (in 19 countries in 2019, which was the last year before the outbreak of the COVID-19 pandemic) was, compared to 2003, significantly higher than that of adults, showing a growing gap between the situation of these two groups of workers on the labour market. The aim of the paper is to assess the situation of young people on the EU labour markets. The analyses based on data obtained from Eurostat cover the years 2003–2020. For the purposes of the analyses, the concept of ‘labour market inclusiveness’ was introduced, understood as a feature of the economy in which access to jobs is similar for all groups of economically active people. The inclusiveness of the national labour markets in the EU has been defined from a static and long-term perspective. For the long-term approach, the method of statistical measurement of α inclusiveness was applied. The final result of the analysis is a typology of the EU labour markets developed on the basis of the proposed definitions, taking into account the level of inclusiveness and the availability of jobs for young people and adults. The research confirms that the national labour markets are considerably diversified. These differences are visible in terms of the unemployment of young people and adults, the reaction of markets to economic shocks and the level of labour market inclusiveness.
inclusiveness, labour market, unemployment, young people, EU countries
J6, O52, O11, O14
Aghabozorgi, S., Seyed Shirkhorshidi, A., & Ying Wah, T. (2015). Time-series clustering – A decade review. Information Systems, 53, 16–38. https://doi.org/10.1016/j.is.2015.04.007.
Asteriou, D., & Hall, S. G. (2016). Applied Econometrics (3rd edition). Palgrave Macmillan. Bal-Domańska, B. (2020). The Situation of Youth on the European Labour Markets – Econometric Analyses. Acta Universitatis Lodziensis. Folia Oeconomica, 2(347), 23–37. https://doi.org/10.18778/0208-6018.347.02.
Bal-Domańska, B. (2021). The impact of macroeconomic and structural factors on the unemployment of young women and men. Economic Change and Restructuring. https://doi.org/10.1007/s10644-021-09341-9.
Baltagi, B. H. (2005). Econometric Analysis of Panel Data (3rd edition). John Wiley & Sons.
Bod’a, M., & Považanová, M. (2021). Output-unemployment asymmetry in Okun coefficients for OECD countries. Economic Analysis and Policy, 69, 307–323. https://doi.org/10.1016/j.eap.2020.12.004.
Breusch, T. S., & Pagan, A. R. (1979). A simple test for heteroscedasticity and random coefficient variation. Econometrica, 47(5), 1287–1294. https://doi.org/10.2307/1911963.
Bruno, G. S. F., Choudhry, M. T., Marelli, E., & Signorelli, M. (2017). The Short- and Long-Run Impacts of Financial Crises on Youth Unemployment in OECD Countries. Applied Economics, 49(34), 3372–3394. https://doi.org/10.1080/00036846.2016.1259753.
Brzinsky-Fay, C. (2017). The interplay of educational and labour market institutions and links to relative youth unemployment. Journal of European Social Policy, 27(4), 346–359. https://doi.org/10.1177/0958928717719198 .
Caliński, T., & Harabasz, J. (1974). A dendrite method for cluster analysis. Communications in Statistics, 3(1), 1–27. https://doi.org/10.1080/03610927408827101 .
Choudhry, M. T., Marelli, E., & Signorelli, M. (2013). Youth and total unemployment rate: The impact of policies and institutions. Rivista Internazionale di Scienze Sociali, 121(1), 63–86.
Dietrich, H., & Möller, J. (2016). Youth unemployment in Europe – business cycle and institutional effects. International Economics and Economic Policy, 13(1), 5–25. https://doi.org/10.1007/s10368-015-0331-1.
Dunsch, S. (2017). Age- and Gender-Specific Unemployment and Okun’s Law in CEE Countries. Eastern European Economics, 55(4), 377–393. https://doi.org/10.1080/00128775.2017.1338962.
European Commission. (2011). Youth on the move: an initiative to unleash the potential of young people to achieve smart, sustainable and inclusive growth in the European Union. Publications Office of the European Union.
Eurostat. (n.d.). LFS main indicators (lfsi). https://ec.europa.eu/eurostat/cache/metadata/en/lfsi_esms.htm.
Greene, W. H. (2000). Econometric Analysis (5th edition). Pearson Education International.
Hutengs, O., & Stadtmann, G. (2013). Age effects in Okun’s law within the Eurozone. Applied Economics Letters, 20(9), 821–825. https://doi.org/10.1080/13504851.2012.750416.
International Labour Organization. (2015). Global Employment Trends for Youth 2015. International Labour Office.
Jahn, D. (2018). Distribution regimes and redistribution effects during retrenchment and crisis: A cui bono analysis of unemployment replacement rates of various income categories in 31 welfare states. Journal of European Social Policy, 28(5), 433–451. https://doi.org/10.1177/0958928717739249.
Macqueen, J. (1967). Some methods for classification and analysis of multivariate observations. In M. L. Le Cam, & J. Neyman (Eds.), Proceedings of the Fifth Berkeley Symposium on Mathematical Statistics and Probability (pp. 281–297). The Regents of the University of California.
Mascherini, M. (2018). Youth Labour in Transition. In J. O’Reilly, J. Leschke, R. Ortlieb, M. Seeleib-Kaiser, & P. Villa (Eds.), Youth Labour in Transition. Inequalities, Mobility, and Policies in Europe (pp. 1–30). Oxford Scholarship Online. https://doi.org/10.1093/oso/9780190864798.001.0001.
Organisation for Economic Co-operation and Development. (2006). General Policies to Improve Employment Opportunities for All. In OECD Employment Outlook. Boosting Jobs and Incomes (pp. 47–126). https://doi.org/10.1787/empl_outlook-2006-5-en.
Pennoni, F., & Bal-Domańska, B. (2021). NEETs and Youth Unemployment: A Longitudinal Comparison Across European Countries. Social Indicator Research. https://doi.org/10.1007/s11205-021-02813-5.
Perugini, C., & Pompei, F. (Eds.). (2015). Inequalities During and After Transition in Central and Eastern Europe. Palgrave Macmillan. https://doi.org/10.1057/9781137460981.
Perugini, C., & Signorelli, M. (2010). Youth labour market performance in European regions. Economic Change and Restructuring, 43(2), 151–185. https://doi.org/10.1007/s10644-009-9082-8.
Pompei, F., & Selezneva, E. (2021). Unemployment and education mismatch in the EU before and after the financial crisis. Journal of Policy Modeling, 43(2), 448–473. https://doi.org/10.1016/j.jpolmod.2019.09.009.
Schmillen, A., & Umkehrer, M. (2017). The scars of youth: Effects of early-career unemployment on future unemployment experience. International Labour Review, 156(3–4), 465–494. https://doi.org/10.1111/ilr.12079.
Wooldridge, J. M. (2009). Introductory Econometrics A Modern Approach (5th edition). South-Western. https://economics.ut.ac.ir/documents/3030266/14100645/Jeffrey_M._Wooldridge_Introductory_Econometrics_A_Modern_Approach__2012.pdf.