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Youth Unemployment: Déjà Vu?

Author: David Bell, David G. Blanchflower
Organisation: Division of Economics University of Stirling, Scotland. The Institute for the Study of Labor (IZA)
Publish Date: 2010
Country: Global
Sector: Economic
Method: Creative thinking
Theme: Employment
Type: Other publication
Language: English
Tags: Youth unemployment, Scarring, Ethnic crime, Health, Life satisfaction, Wages

This paper reviews current issues in youth labour markets in developed countries. It argues that young people aged 16-25 have been particularly hard hit during the current recession. Using the USA and UK as cast studies, it analyses both causes and effects of youth unemployment using micro-data. It argues that there is convincing evidence that the young are particularly susceptible to the negative effects of spells of unemployment well after their initial experience of worklessness. Because the current youth cohort is relatively large, the longer-term outlook for youth unemployment is quite good, but there is a strong case for policy intervention now to address the difficulties that the current cohort is having in finding access to work.
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