Abstract

AbstractWe investigate the “determinants” of spatial variations in youth unemployment and NEET rates, and the presence of spatial clusters, for Italy, Spain and the UK. We aggregate Labour Force Survey data for the period 1993–2018 to a “regional” level. We find that youths are sensitive to aggregate labor market conditions and a discouraged worker effect. In the UK and Spain, temporary jobs are more likely to be preferred to part‐time jobs, whereas in Italy the opposite occurs. There is evidence of spatial clustering of youth unemployment and NEET rates. We discuss the implications for place‐based regional and labor market policies.

Highlights

  • The youth unemployment experience of OECD countries over time has been very varied

  • We use individual ‘worker’ level Labour Force Survey (LFS) data, collected quarterly, for each country for the time-period 1993-2011, which we aggregate to the regional level for Italy, Spain and the UK

  • Responses to the ‘recession’ differ. This variation needs to be borne in mind when we investigate the determinants of youth unemployment and NEET rates, especially given our aim to identify ‘common’ determinants

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Summary

Introduction

The youth unemployment experience of OECD countries over time has been very varied. In a recent review of OECD country experience, Scarpetta et al (2010) show that over the period 1995-97 to 2005-07 Italy and Spain had experienced higher than average youth unemployment rates, but they had witnessed the greatest decline over the decade. Britain had lower than average youth unemployment rates but had experienced higher than average increases. In 2008, the youth-adult unemployment ratio was 2.8 for the OECD area, but ranged from 1.5 in Germany to between 3 and 4 in Denmark, Italy, Korea and United Kingdom, and above 4 only in Sweden and Spain (Scarpetta et al, 2010). Spain had by far the largest youth-adult unemployment ratio. A number of researchers have documented the fact that young people are disproportionately affected by recessions, and the ‘Great Recession’ in 200708 was no exception, where the effects in Italy were severe

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