Youth Unemployment in Europe Appraisal and Policy Options

140 Pages·2014·1.18 MB·English

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Youth Unemployment in Europe
Appraisal and Policy Options
Francesco Berlingieri, Holger Bonin,
Maresa Sprietsma
Centre for European Economic Research /
Zentrum für Europäische
Wirtschaftsforschung GmbH (ZEW)
The Robert Bosch Stiftung is one of the
major German foundations associated with
a private company. It holds 92 percent of
the share capital of Robert Bosch GmbH.
Established in 1964, it represents the
philanthropic endeavors of Robert Bosch
(1861–1942), focussing on the fields
of science, health, international relations,
education, society, and culture.
In Stuttgart, the Foundation maintains
the Robert Bosch Hospital, the Dr. Margarete
Fischer-Bosch Institute for Clinical
Pharmacology, and the Institute for the
History of Medicine.
Between 1964 and 2013, the Foundation
has made available 1.2 billion euros for
projects. In 2013, approximately 70 million
euros were spent on project funding.
www.bosch-stiftung.de
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Youth Unemployment in Europe
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Appraisal and Policy Options
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Centre for European Economic Research /
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Zentrum für Europäische
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4
Table of Contents
Table of Contents 4
List of Figures 6
List of Tables 7
List of Boxes 8
List of Abbreviations 9
Foreword 11
Zusammenfassung 13
Executive Summary 23
1 Introduction 33
2 Youth Unemployment in Europe 35
2.1 Overview 35
2.2 The Development of Youth Unemployment 36
2.3 The Situation of Youth Compared to Adults 40
2.4 EU Policies to Tackle Youth Unemployment 48
2.5 Concluding Remarks 49
3 Structural Sources of Youth Unemployment 51
3.1 Overview 51
3.2 Education and Training Systems 53
3.2.1 Early School-Leavers 55
3.2.2 Vocational Education 56
3.2.3 Tertiary Education 58
3.3 Institutions of the Labour Market 59
3.3.1 Employment Protection Legislation (EPL) 60
3.3.2 Wage-Setting Institutions 63
3.3.3 Labour Market Policies 64
3.4 Demographic Change, Migration and Mobility 67
3.5 Concluding Remarks 68
5 5
5
4 Country Briefs 69
4.1 Spain 69
4.1.1 Overview and Policy Recommendations 69
4.1.2 The Macroeconomic Context and the Effects of the Crisis 71
4.1.3 Duality of the Labour Market 73
4.1.4 The Educational System 74
4.1.5 Wage-Setting Institutions and Demographic Changes 76
4.1.6 Survey of Policies and Initiatives 76
4.2 Italy 83
4.2.1 Overview and Policy Recommendations 83
4.2.2 The Macroeconomic Context and the Effects of the Crisis 85
4.2.3 The Educational System 88
4.2.4 Duality of the Labour Market 91
4.2.5 The Lack of Geographic Mobility 93
4.2.6 Survey of Policies and Initiatives 93
4.3 Portugal 97
4.3.1 Overview and Policy Recommendations 97
4.3.2 The Macroeconomic Context and the Effects of the Crisis 99
4.3.3 The Minimum Wage 101
4.3.4 Duality of the Labour Market 102
4.3.5 The Educational System 103
4.3.6 Survey of Policies and Initiatives 105
5 General Course of Action for Europe 109
5.1 Overview and Policy Recommendations 109
5.2 Create More Jobs for Labour Market Entrants 111
5.3 Align Skills and Labour Market Needs 114
5.4 Use a Careful Selection of Active Labour Market Policies 117
5.5 Support Mobility Across Borders 121
5.6 Involve All Relevant Stakeholders 124
6 References 127
Acknowledgements 135
6
List of Figures
Figure 2-1: C hange in Gross Domestic Product and Change in
Youth Unemployment Rate 2000 – 2012, EU-27 40
Figure 2-2: Unemployment Rates by Age 2000 – 2012, EU-27 41
Figure 2-3: Ratio of Youth (15- to 24-Year-Olds) to Adult (25- to 64-Year-Olds)
Unemployment Rates by Country, in 2006 and 2012 42
Figure 2-4: NEET Rates 15- to 24-Year-Olds by Country, 2000 – 2012 44
Figure 2-5: Labour Market Status of 25- to 29-Year-Olds in 2012, by Country 45
Figure 2-6: P roportion of Temporary Employment by Age Groups in 2012,
by Country 46
Figure 2-7: Main Reason for Temporary Employment for the
15- to 24-Years-Olds by Country, 2012 47
Figure 3-1: Unemployment Rates by Educational Attainment of
25- to 29-Year-Olds in 2012, by Country 54
Figure 3-2: P rotection of Permanent Workers against Individual and
Collective Dismissals, 2013 61
Figure 3-3: R egulation on Temporary Contracts, by Country, 2013. 62
Figure 4-1: C hange in Youth (15- to 24-year-olds)
Unemployment Rate and Change in GDP 1990 – 2012, Spain 72
Figure 4-2: The Spanish Educational System 75
Figure 4-3: Change in Youth (15- to 24-Year-Olds)
Unemployment Rate and Change in GDP 1990 – 2012, Italy 86

Figure 4-4: Y outh (15- to 24-year-olds)
Unemployment Rate by Region in Italy, 2000 – 2012 87
Figure 4-5: Unemployment Rate by Age Group in Portugal, 2000 – 2012 100
Figure 4-6: M inimum Wage as a Percentage of the Median Wage,
by Country, 2012 101
Figure 4-7: Educational Attainment (25- to 34-Year-Olds) in Portugal,
2000 – 2012 104
7 7
7
List of Tables
Table 2-1: Youth (15- to 24-Year-Olds)
Unemployment Rate by Country, 2000 – 2012 36
Table 2-2: N umber of Unemployed Youths (18- to 24-Year-Olds)
in Thousands by Country, 2000 – 2012 38
Table 2-3: GDP Growth by Country, 2000 – 2012 39
Table 4-1: Regional Youth Unemployment Rates (15- to 24-Year-Olds)
in Spain, 2013 73
Table 4-2: Severance Payments by Type of Contract in Spain 74
Table 4-3: L ocal and Private Initiatives to Tackle Youth Unemployment
in Spain 80
Table 4-4: German Apprenticeships Programs for Spanish Youths 82
Table 4-5: The Italian Educational System 88
Table 4-6: Employment and Social Security Contribution
by Contract Type in 2011, Italy 92
Table 4-7: L ocal and Private Initiatives to Tackle Youth Unemployment
in Italy 96
Table 4-8: Severance Payments by Type of Contract, Portugal 103
Table 4-9: The Portuguese Educational System 104
Table 4-10: Private Initiatives to Tackle Youth Unemployment in Portugal 107
8
List of Boxes
Box 2-1: Definitions of Unemployment Measures 37
Box 2-2: Definition of NEET Rate 43
Box 3-1: ISCED Classification of Educational Levels 54
Box 4-1: The Dual Vocational Education System in the Province
of South Tyrol 89
9 9
9
List of Abbreviations
ALMPs Active Labour Market Policies
EPIS Empresários pela Inclusao Social
EPL Employment Protection Legislation
ESF European Social Fund
ESO Educación Secundaria Obligatoria
EU European Union
EURES EURopean Employment Services
Eurofound European Foundation for the Improvement
of Living and Working Conditions
GDP Gross Domestic Product
IFP Istruzione e Formazione Professionale
ILO International Labour Organisation
ISFOL Istituto per lo Sviluppo della Formazione Professionale dei Lavoratori
ISCED International Standard Classification of Education
ISTAT Italian National Statistical Institute
ITS Istituti Tecnici Superiori
LLP Lifelong Learning Programme
NEET Not in Employment, Education or Training
OECD Organisation for Economic Co- operation and Development
PES Public Employment Services
VET Vocational Education and Training
YEI Youth Employment Initiative
ZAV Zentrale Auslands- und Fachvermittlung
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