[wanabidii] Tackling the youth employment crisis: A macroeconomic perspective

Thursday, November 22, 2012

This paper is a revised and substantially expanded version of a background note that  was prepared for the report on the Youth Employment Crisis: Time for Action that will be  presented and deliberated at the 101st session of the International Labour Conference   (1 - 14 June 2012). 

The authors highlight salient empirical regularities. First, the youth  unemployment rate is typically twice the adult unemployment across low, middle and  high-income countries. Second, youth employment is  much more sensitive to business  cycles and policy-induced economic downturns than adult employment. Third, short-run  demand shocks mutate into long-run 'scarring' effects manifested in reduced employment  and earnings opportunities that can last decades. Young people with limited skills and from  disadvantaged backgrounds are particularly vulnerable to 'scarring' effects.

Link: http://www.ilo.org/wcmsp5/groups/public/---ed_emp/---emp_policy/documents/publication/wcms_190864.pd...

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