Determinants of Youth Unemployment: Evidence From 18 OECD Countries

Abstract

Youth unemployment rates are significantly and consistently higher than total unemployment rates, hitting especially high values in a crisis context. The aim of this work is to assess the determinants of youth unemployment in developed countries, relying on a youth to total unemployment ratio. Using data from 18 OECD countries from 1990 to 2019, the results of the estimations indicate that labor market flexibilization and economic growth have a widening effect of on the gap between youth and total unemployment rates, while post-secondary educational attainment contributes to reduce the gap.