Youth Labor Market Integration in European Regions

Rosario Scandurra,Yuri Kazepov,Ruggero Cefalo

doi:10.3390/su12093813

Rosario Scandurra, Yuri Kazepov + Show 1 more

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https://doi.org/10.3390/su12093813

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Abstract

Countries’ institutional configurations and structural characteristics play an important role in shaping transitions from school to work. Recent empirical evidence shows significant regional and territorial differences in youth unemployment and labor market participation. Along this research strand, we argue in favor of a place-sensitive approach to youth labor market integration in order to address the regional disparities of young people’s opportunities. In order to investigate the synergic effect of different contextual configurations, we construct a composite measure, namely, the youth labor market integration (YLMI) index. This considers a wide range of indicators of the access, exclusion, and duration of the transition into employment at the regional level. The YLMI index allows cross-regional and longitudinal comparisons of the European Union (EU) local labor markets and youth employment opportunities.

Highlights

The integration of young people in the labor market has become a severe societal problem in many European countries, for its long-term impact on life chances
The importance of place-sensitive measures is gaining increasing recognition [62,78], as European-wide place-neutral or general-purpose interventions may prove ineffective in addressing problems of spatially uneven youth labor market integration (YLMI)
Many regions that have suffered a constant economic downturn or are strongly hit by youth unemployment may lack the administrative capacity [82] to absorb European Union (EU) funds and to effectively implement measures designed to target youth integration [83,84]: The extreme case of Italy shows that the implementation of Youth Guarantee (YG) was not effective in targeting regional differentiation

Summary

Introduction

The integration of young people in the labor market has become a severe societal problem in many European countries, for its long-term impact on life chances. The YLMI index combines several indicators of the outcomes of school-to-work transitions, focusing on exclusion (i.e., NEET rates (Not in Employment, Education, or Training) and unemployment ratios), access (i.e., employment rates according to educational attainment), and duration of the transition into employment (i.e., employment rates three years after educational completion) for 281 NUTS-2 (Nomenclature of Territorial Units for Statistics) European regions during the period 2004–2018 As a result, it provides a measure of contextual regional fragilities or strengths of youth labor market integration. Our analysis reveals persistent untapped regional potential expressed by the lack of youth labor market integration In this light, the YLMI index provides valuable information for raising the awareness of policy-makers, showing the characteristics of the job market opportunities of young people, as a core group for the future of Europe.

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