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.
Keywords: macroeconomic imbalances, ARDL Bounds testing, 2008 Economic Crisis, youth unemployment.
Contents
- RASDAQ: The final curtain
Cornelia POP
Cristina BALINT
Maria-Andrada GEORGESCU
Ioan Alin NISTOR
- The relationship between public expenditure and economic
growth in Romania: Does it obey Wagner’s or Keynes’s Law?
Lingxiao WANG
Adelina DUMITRESCU PECULEA
Handuo XU
- Cracks in BRICs: A sectoral financial balances analysis
and implications for macroeconomic policy
Sashi SIVRAMKRISHNA
- An empirical study of factors influencing total unemployment
rate in comparison to youth unemployment rate
in selected EU member-states
Filip KOKOTOVIĆ
- Determinants of sovereign bond yields
in emerging economies: Some panel inferences
Sri Hari NAIDU. A
Phanindra GOYARI
Bandi KAMAIAH
- Investment funds and portfolio of loan guarantees
as financial steps proposals to support innovative
Small and Medium Enterprises
Mădălina Gabriela ANGHEL
Constantin ANGHELACHE
Daniel DUMITRESCU
- Dynamic relationship among foreign direct investments,
human capital, economic freedom and economic growth:
Evidence from panel cointegration and panel causality analysis
Oktay KIZILKAYA
Ahmet AY
Gökhan AKAR
- Integrating the issue of infrastructural investment
with economic growth: The case of India
Mukul GUPTA
Rahul BUDHADEV
Varun CHOTIA
N V Muralidhar RAO
- Globalization of the corruption phenomenon –
human capital gone wild
Dumitru-Alexandru BODISLAV
Ciprian ROTARU
Raluca GEORGESCU
- Predicting probability of default of Indian companies:
A market based approach
Bhanu Pratap SINGH
Alok Kumar MISHRA
- Statistical-econometric model used to analyze
the operational and insolvency risks
Constantin ANGHELACHE
Alexandru MANOLE
Mădălina Gabriela ANGHEL
Diana Valentina SOARE
- Short and long term analysis of some factors effecting youth
unemployment in Turkey
Rıza BAYRAK
Halim TATLI
- Determining the causal relationships among entrepreneurship,
educational attainment and per capita GDP in high-income
OECD countries
Feyza BALAN
Seda OZEKICIOGLU
Cuneyt KILIC
- Assessment of the bankruptcy risk
based on the solvency ratio
Daniel BRÎNDESCU-OLARIU
- Using simulation and modeling to improve career management
processes in organizations
Nicoleta Valentina FLOREA
- Commodity market integration and price transmission:
Empirical evidence from India
Pratap Kumar JENA
- Testing the relationship between military spending and private
investments: Evidence from Turkey
Gülbahar ÜÇLER
- Growth-finance nexus:
Empirical evidence from India
Tanzeem HASNAT
Shahid ASHRAF
Umer J. BANDAY
- Net earnings trends in the EU countries
Mădălina Ecaterina POPESCU
Amalia CRISTESCU
Larisa STĂNILĂ
- Communication and PR in crisis situations
Claudia Elena PAICU
Laurențiu Gabriel FRÂNCU