Year: 2012, August. Volume: 9 - Issue: 2
Youth employment in Europe: do institutions and social capital explain better than mainstream economics?
Bruno Contini View this article
Start page: 247 - End page: 277Keywords
EU labor market institutions and LM performanceAbstract
Why did employment growth - high in the last decade - take place at the expense of young workers mainly, but not only. in the countries of Southern Europe? Youth unemployment is now exceeding 30%, after decades hovering around 20% and over, despite a variety of factors, common to most EU countries, that would be expected to reduce its evolution: population ageing and the demographic decline, low labor cost of young workers, flexibility of working arrangements, higher educational attainment, low unionization of young workers, early retirement practices of workers 50+. But neither seems to provide a convincing explanation for countries of Southern Europe. Historically based institutions and political tradition, cultural values, social capital - factors that go beyond the standard explanation of economic theory - provide a more satisfying interpretation.
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