Euro, crisis and unemployment:: Youth patterns, youth policies?

Atanu Ghoshray ^[1] ; Javier Ordóñez ^[3] ; Hector Sala Lorda ^[2]
1. [1] Newcastle University
  
  Newcastle University
  
  Reino Unido
2. [2] Universitat Autònoma de Barcelona
  
  Universitat Autònoma de Barcelona
  
  Barcelona, España
3. [3] Instituto de Economía Internacional
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Localización: Working papers (Universitat Autònoma de Barcelona. Departament d'Economia Aplicada), Nº. 9 (Maig 2016), 2016
Idioma: inglés
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Resumen
- This paper examines the occurrence of structural breaks in European unemployment associated withmajor events experienced by the European economiesat an institutional level: the creation of the European and Monetary Union (EMU) in 1999,and the Euro/financialcrisisin 2008-2009, which was followed by ageneral andintensive reform process in the years afterwards.Beyond the well documentedasymmetries across countries, weuncover different responses of adult and youthunemployment rates.While adult unemployment is more prone to experience structural breaks, youth unemployment is more sensitive to business cycle oscillations. This has been especially so in the recent crisis andcalls for fine tuning policy measures specifically targeted to youth unemployed in bad times. One important implication of our findings is that generic labour market reforms arenot effective enough to solve the youthunemployment problem across Europe.We point to educational policies thatraise average qualifications and help school-to-work transitions as suitable complementary cures.