Abstract
Macroeconomic indicators regarding employment have been gradually improved by southern European countries during recent years. However, the labour market still seems to be highly polarized across regions and some groups are persistently excluded from jobs recovery. This paper analyses the effectiveness of active labour market initiatives in the Valencian region, one of the worst-affected areas regarding unemployment in Spain. By using a large official database from the Valencian government, results of the probit model show that participating on active labour market initiatives have a positive impact on the probability of exiting unemployment, even after controlling for age, level of education and gender of candidates. The research also reveals that people aged 55 and older and females constitute the most vulnerable groups. Regarding women, only those with higher education increase their probability of finding a job.
Highlights
As a consequence of the recent financial crisis, Spain has registered the second highest unemployment rate between EU countries
For all three years considered in our research, most coefficients of the gender variable and interactions variables between gender and age are negative and statistically significant
Young people show the worst unemployment figures according to official Valencian statistics, women constitute the core of structural unemployment
Summary
As a consequence of the recent financial crisis, Spain has registered the second highest unemployment rate between EU countries (only Greece reported a worse record). According to Grekousis [1], unemployment from the 2008 global economic crisis is highly polarized across the EU regions. In the case of Spain, one of the most affected regions regarding the unemployment was the Valencian region, a coastal area located on the east part of the country. During those years, the growth of the housing bubble in that region was facilitated by low-interest loans along the entire Mediterranean Spanish coast. The unemployment rate in Valencian region at the end of 2012 was 27.62%
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