Theoretical and Applied Economics
No. 3 / 2016 (608), Autumn
An empirical study of factors influencing total unemployment rate in comparison to youth unemployment rate in selected EU member-states
Dag Hammarskjöld University College of International Relations and Diplomacy, Zagreb, Croatia
Abstract. The issue of youth unemployment rate in the heavily indebted and less developed EU countries is currently on the margins of both media interest and policy debates. This paper compares the influence of several economic variables on the total unemployment rate and the youth unemployment rate. The countries that are studied are three countries with the highest youth unemployment rate: Greece, Croatia and Spain, and three countries with the lowest youth unemployment rate: Germany, Denmark and the Czech Republic. By implementing an Autoregressive Distributed Lags (ARDL) approach, this paper concludes that the youth unemployment rate is significantly more affected by the increase of the public debt-to-GDP ratio in comparison to the total unemployment rate in Croatia and Spain. This paper finds significant differences in the factors that impact youth unemployment rate in comparison to total unemployment rate. Notably, the impact of economic growth is far stronger in decreasing total unemployment rate than youth unemployment rate. The main conclusion of this paper is that there should be a new European economic framework that will focus on combating rising youth unemployment rate in order to avoid potentially dangerous consequences and restore faith in the EU and national institutions which has still not recovered from the 2008 crisis.
Contents
RASDAQ: The final curtain
The relationship between public expenditure and economic growth in Romania: Does it obey Wagner’s or Keynes’s Law?
Cracks in BRICs: A sectoral financial balances analysis and implications for macroeconomic policy
An empirical study of factors influencing total unemployment rate in comparison to youth unemployment rate in selected EU member-states
Is real depreciation expansionary? The case of the Czech Republic
Determinants of sovereign bond yields in emerging economies: Some panel inferences
Investment funds and portfolio of loan guarantees as financial steps proposals to support innovative Small and Medium Enterprises
Dynamic relationship among foreign direct investments, human capital, economic freedom and economic growth: Evidence from panel cointegration and panel causality analysis
Integrating the issue of infrastructural investment with economic growth: The case of India
Globalization of the corruption phenomenon – human capital gone wild
Productivity spillovers from FDI in Turkey: Evidence from quantile regressions
Predicting probability of default of Indian companies: A market based approach
Which country after Greece? Sustainability of budget deficits in selected EU countries: A panel cointegration analysis with multiple structural breaks under cross-section dependence
Statistical-econometric model used to analyze the operational and insolvency risks
Short and long term analysis of some factors effecting youth unemployment in Turkey
Determining the causal relationships among entrepreneurship, educational attainment and per capita GDP in high-income OECD countries
Assessment of the bankruptcy risk based on the solvency ratio
Using simulation and modeling to improve career management processes in organizations
Commodity market integration and price transmission: Empirical evidence from India
Testing the relationship between military spending and private investments: Evidence from Turkey
Growth-finance nexus: Empirical evidence from India
The importance and role of small and medium-sized businesses
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Net earnings trends in the EU countries
Communication and PR in crisis situations