IDEAS home Printed from https://ideas.repec.org/a/agr/journl/vxxiiiy2016i3(608)p79-92.html
   My bibliography  Save this article

An empirical study of factors influencing total unemployment rate in comparison to youth unemployment rate in selected EU member-states

Author

Listed:
  • Filip KOKOTOVIĆ

    (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.

Suggested Citation

  • Filip KOKOTOVIĆ, 2016. "An empirical study of factors influencing total unemployment rate in comparison to youth unemployment rate in selected EU member-states," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(3(608), A), pages 79-92, Autumn.
    • Handle: RePEc:agr:journl:v:xxiii:y:2016:i:3(608):p:79-92
    as

    Download full text from publisher

    File URL: http://store.ectap.ro/articole/1199.pdf
    Download Restriction: no
    File URL: http://www.ectap.ro/articol.php?id=1199&rid=124
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Daiji Kawaguchi & Tetsushi Murao, 2014. "Labor‐Market Institutions and Long‐Term Effects of Youth Unemployment," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 46(S2), pages 95-116, October.
    2. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    3. Dennis Tamesberger, 2015. "A multifactorial explanation of youth unemployment and the special case of Austria," International Social Security Review, John Wiley & Sons, vol. 68(1), pages 23-45, January.
    4. Elliott, Graham & Rothenberg, Thomas J & Stock, James H, 1996. "Efficient Tests for an Autoregressive Unit Root," Econometrica, Econometric Society, vol. 64(4), pages 813-836, July.
    5. Kwiatkowski, Denis & Phillips, Peter C. B. & Schmidt, Peter & Shin, Yongcheol, 1992. "Testing the null hypothesis of stationarity against the alternative of a unit root : How sure are we that economic time series have a unit root?," Journal of Econometrics, Elsevier, vol. 54(1-3), pages 159-178.
    6. Bettina Isengard, 2002. "Youth Unemployment: Individual Risk Factors and Institutional Determinants: A Case Study of Germany and the United Kingdom," Discussion Papers of DIW Berlin 284, DIW Berlin, German Institute for Economic Research.
    7. Godfrey, Leslie G, 1978. "Testing against General Autoregressive and Moving Average Error Models When the Regressors Include Lagged Dependent Variables," Econometrica, Econometric Society, vol. 46(6), pages 1293-1301, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nikica Mojsoska-Blazevski & Marjan Petreski & Marjan I Bojadziev, 2017. "Youth survival in the labour market: Employment scarring in three transition economies," The Economic and Labour Relations Review, , vol. 28(2), pages 312-331, June.
    2. Mohammad Ajmal Hameed & Mohammad Mafizur Rahman & Rasheda Khanam, 2023. "Analyzing the Consequences of Long-Run Civil War on Unemployment Rate: Empirical Evidence from Afghanistan," Sustainability, MDPI, vol. 15(8), pages 1-21, April.
    3. Law, Siong Hook & Naseem, N.A.M. & Lau, Wei Theng & Trinugroho, Irwan, 2020. "Can innovation improve income inequality? Evidence from panel data," Economic Systems, Elsevier, vol. 44(4).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Filip KOKOTOVIĆ, 2016. "An empirical study of factors influencing total unemployment rate in comparison to youth unemployment rate in selected EU member-states," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(3(608), A), pages 79-92, Autumn.
    2. Kentaka Aruga & Md. Monirul Islam & Arifa Jannat, 2021. "Does Staying at Home during the COVID-19 Pandemic Help Reduce CO 2 Emissions?," Sustainability, MDPI, vol. 13(15), pages 1-13, July.
    3. Flavio Vilela Vieira & Cleomar Gomes Da Silva, 2018. "Brics Export Performance: An Ardl Bounds Testing Empirical Investigation," Anais do XLIV Encontro Nacional de Economia [Proceedings of the 44th Brazilian Economics Meeting] 101, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    4. Chen, Pei-Fen & Chien, Mei-Se & Lee, Chien-Chiang, 2011. "Dynamic modeling of regional house price diffusion in Taiwan," Journal of Housing Economics, Elsevier, vol. 20(4), pages 315-332.
    5. Pieters, Gina & Vivanco, Sofia, 2017. "Financial regulations and price inconsistencies across Bitcoin markets," Information Economics and Policy, Elsevier, vol. 39(C), pages 1-14.
    6. Ahmed, Walid M.A. & Sleem, Mohamed A.E., 2023. "Short- and long-run determinants of the price behavior of US clean energy stocks: A dynamic ARDL simulations approach," Energy Economics, Elsevier, vol. 124(C).
    7. Muhammad Shahbaz & Nanthakumar Loganathan & Aviral Tiwari & Reza Sherafatian-Jahromi, 2015. "Financial Development and Income Inequality: Is There Any Financial Kuznets Curve in Iran?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 124(2), pages 357-382, November.
    8. Yongliang Zhang & Md. Qamruzzaman & Salma Karim & Ishrat Jahan, 2021. "Nexus between Economic Policy Uncertainty and Renewable Energy Consumption in BRIC Nations: The Mediating Role of Foreign Direct Investment and Financial Development," Energies, MDPI, vol. 14(15), pages 1-29, August.
    9. Kyriakos Emmanouilidis & Christos Karpetis, 2020. "The Defense–Growth Nexus: A Review of Time Series Methods and Empirical Results," Defence and Peace Economics, Taylor & Francis Journals, vol. 31(1), pages 86-104, January.
    10. Qianyi Li & Md Qamruzzaman, 2023. "Innovation-Led Environmental Sustainability in Vietnam—Towards a Green Future," Sustainability, MDPI, vol. 15(16), pages 1-34, August.
    11. Halicioglu, Ferda & Ketenci, Natalya, 2015. "The impact of international trade on environmental quality in transition countries: evidence from time series data during 1991-2013," MPRA Paper 71097, University Library of Munich, Germany, revised 2015.
    12. Zamanipour, Behzad & Ghadaksaz, Hesam & Keppo, Ilkka & Saboohi, Yadollah, 2023. "Electricity supply and demand dynamics in Iran considering climate change-induced stresses," Energy, Elsevier, vol. 263(PE).
    13. Ingrid Groessl & Artur Tarassow, 2015. "A Microfounded Model of Money Demand Under Uncertainty, and some Empirical Evidence," Macroeconomics and Finance Series 201504, University of Hamburg, Department of Socioeconomics, revised Jan 2018.
    14. Stefano Mainardi, 2018. "Fishing vessel efficiency, skipper skills and hake pricetransmission in a small island economy," Review of Agricultural, Food and Environmental Studies, INRA Department of Economics, vol. 99(3-4), pages 215-251.
    15. de Mello Luiz & Moccero Diego & Mogliani Matteo, 2013. "Do Latin American Central Bankers Behave Non-Linearly? The Experiences of Brazil, Chile, Colombia and Mexico," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 17(2), pages 141-165, April.
    16. Uddin, Gazi Salah & Shahbaz, Muhammad & Arouri, Mohamed & Teulon, Frédéric, 2014. "Financial development and poverty reduction nexus: A cointegration and causality analysis in Bangladesh," Economic Modelling, Elsevier, vol. 36(C), pages 405-412.
    17. Addison-Smyth, Diarmaid & McQuinn, Kieran & O'Reilly, Gerard, 2009. "Modelling Credit in the Irish Mortgage Market," The Economic and Social Review, Economic and Social Studies, vol. 40(4), pages 371-392.
    18. Dogan, Eyup & Seker, Fahri, 2016. "Determinants of CO2 emissions in the European Union: The role of renewable and non-renewable energy," Renewable Energy, Elsevier, vol. 94(C), pages 429-439.
    19. Hany Abdel-Latif & Tapas Mishra & Anita Staneva, 2019. "Arab Countries between Winter and Spring: Where Democracy Shock Goes Next!," Economies, MDPI, vol. 7(1), pages 1-19, March.
    20. David Greasley & Les Oxley, 2010. "Cliometrics And Time Series Econometrics: Some Theory And Applications," Journal of Economic Surveys, Wiley Blackwell, vol. 24(5), pages 970-1042, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:agr:journl:v:xxiii:y:2016:i:3(608):p:79-92. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mircea Dinu (email available below). General contact details of provider: https://edirc.repec.org/data/agerrea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.