IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i14p11080-d1194908.html
   My bibliography  Save this article

The Effect of Digitalization on Youth Unemployment for EU Countries: Treat or Threat?

Author

Listed:
  • Oğuz Başol

    (Department of Labor Economics and Industrial Relations, Kırklareli University, Kırklareli 39100, Turkey)

  • Hüseyin Sevgi

    (Department of Labor Economics and Industrial Relations, Kırklareli University, Kırklareli 39100, Turkey)

  • Esin Cumhur Yalçın

    (Department of Econometrics, Kırklareli University, Kırklareli 39100, Turkey)

Abstract

Unemployment affects approximately 73 million young people, representing 17.9% of the global youth workforce in 2022. Although there are several policies to prevent youth unemployment, digitalization seems to be one of the strongest. This research focuses on the impact of the Digital Economy and Society Index (DESI) on youth unemployment in 27 European countries from 2018 to 2021. For the research, the “Digital Economy and Society Index” was measured with four sub-dimensions. These were “connectivity”, “digital public services”, “human capital”, and “digital technology integration”. Additionally, “Youth Unemployment” was measured with three sub-dimensions. These included the “long-term youth unemployment rate”, “not in education, employment, or training rate”, and “youth unemployment rate”. The analyses were conducted using SmartPLS 4 and the results showed that the DESI reduces youth unemployment each year. According to the findings, the indicators of DESI can be an effective strategy for combating youth unemployment in European countries.

Suggested Citation

  • Oğuz Başol & Hüseyin Sevgi & Esin Cumhur Yalçın, 2023. "The Effect of Digitalization on Youth Unemployment for EU Countries: Treat or Threat?," Sustainability, MDPI, vol. 15(14), pages 1-15, July.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:14:p:11080-:d:1194908
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/14/11080/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/14/11080/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Frank Fossen & Alina Sorgner, 2019. "Mapping the Future of Occupations: Transformative and Destructive Effects of New Digital Technologies on Jobs," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 13(2), pages 10-18.
    2. Nešporová, Alena, 2017. "Long-term unemployment in Central Europe a review of its nature and determinants in five countries," ILO Working Papers 994956892902676, International Labour Organization.
    3. John Hulland, 1999. "Use of partial least squares (PLS) in strategic management research: a review of four recent studies," Strategic Management Journal, Wiley Blackwell, vol. 20(2), pages 195-204, February.
    4. Cockx, Bart, 2013. "Youth Unemployment in Belgium: Diagnosis and Key Remedies," IZA Policy Papers 66, Institute of Labor Economics (IZA).
    5. Gruber, Harald, 2019. "Proposals for a digital industrial policy for Europe," Telecommunications Policy, Elsevier, vol. 43(2), pages 116-127.
    6. Frey, Carl Benedikt & Osborne, Michael A., 2017. "The future of employment: How susceptible are jobs to computerisation?," Technological Forecasting and Social Change, Elsevier, vol. 114(C), pages 254-280.
    7. Dube, S. & Dube, M. & Turan, A., 2015. "Information technology in Turkey: Creating high-skill jobs along with more unemployed highly-educated workers?," Telecommunications Policy, Elsevier, vol. 39(10), pages 811-829.
    8. Fulvia Pennoni & Beata Bal-Domańska, 2022. "NEETs and Youth Unemployment: A Longitudinal Comparison Across European Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 162(2), pages 739-761, July.
    9. Jaradat, Maram & Jibreel, Manal & Skaik, Huda, 2020. "Individuals' perceptions of technology and its relationship with ambition, unemployment, loneliness and insomnia in the Gulf," Technology in Society, Elsevier, vol. 60(C).
    10. Marra, Mita, 2022. "Productive interactions in digital training partnerships: Lessons learned for regional development and university societal impact assessment," Evaluation and Program Planning, Elsevier, vol. 95(C).
    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. Georgiana-Alina Crisan & Madalina Ecaterina Popescu & Eva Militaru & Amalia Cristescu, 2023. "EU Diversity in Terms of Digitalization on the Labor Market in the Post-COVID-19 Context," Economies, MDPI, vol. 11(12), pages 1-19, December.

    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. Fossen, Frank M. & Sorgner, Alina, 2021. "Digitalization of work and entry into entrepreneurship," Journal of Business Research, Elsevier, vol. 125(C), pages 548-563.
    2. Pablo Casas & José L. Torres, 2023. "Automation, automatic capital returns, and the functional income distribution," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 32(1), pages 113-135, January.
    3. Fossen, Frank M. & Sorgner, Alina, 2022. "New digital technologies and heterogeneous wage and employment dynamics in the United States: Evidence from individual-level data," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    4. Carbonero, Francesco & Scicchitano, Sergio, 2021. "Labour and technology at the time of Covid-19. Can artificial intelligence mitigate the need for proximity?," GLO Discussion Paper Series 765, Global Labor Organization (GLO).
    5. Julia Bock-Schappelwein & Andrea Egger, 2023. "Arbeitsmarkt 2030. Rückschlüsse für Österreich," WIFO Studies, WIFO, number 71172.
    6. Casas, Pablo & Román, Concepción, 2023. "Early retired or automatized? Evidence from the survey of health, ageing and retirement in Europe," The Journal of the Economics of Ageing, Elsevier, vol. 24(C).
    7. Ekaterina S. Dashkova & Natalia V. Dorokhova, 2023. "Regional labour market: A method for research," Journal of New Economy, Ural State University of Economics, vol. 24(3), pages 119-135, October.
    8. Loebbing, Jonas, 2018. "An Elementary Theory of Endogenous Technical Change and Wage Inequality," VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy 181603, Verein für Socialpolitik / German Economic Association.
    9. Azman ISMAIL & Rizal ABU BAKAR & Wan Aishah WAN MOHD NOWALID & Nurul Hayati ADNAN & Mohamad Azhari ABU BAKAR & Syed Shah ALAM, 2014. "Does Career Program Have Effect On Employee Outcomes? Empirical Evidence," Management and Marketing Journal, University of Craiova, Faculty of Economics and Business Administration, vol. 0(2), pages 152-166, November.
    10. Al-Baraa Abdulrahman Al-Mekhlafi & Ahmad Shahrul Nizam Isha & Nicholas Chileshe & Mohammed Abdulrab & Anwar Ameen Hezam Saeed & Ahmed Farouk Kineber, 2021. "Modelling the Relationship between the Nature of Work Factors and Driving Performance Mediating by Role of Fatigue," IJERPH, MDPI, vol. 18(13), pages 1-17, June.
    11. Apriani Soepardi & Pratikto Pratikto & Purnomo Budi Santoso & Ishardita Pambudi Tama & Patrik Thollander, 2018. "Linking of Barriers to Energy Efficiency Improvement in Indonesia’s Steel Industry," Energies, MDPI, vol. 11(1), pages 1-22, January.
    12. Basso, Henrique S. & Jimeno, Juan F., 2021. "From secular stagnation to robocalypse? Implications of demographic and technological changes," Journal of Monetary Economics, Elsevier, vol. 117(C), pages 833-847.
    13. Iftekhairul Islam & Fahad Shaon, 2020. "If the Prospect of Some Occupations Are Stagnating With Technological Advancement? A Task Attribute Approach to Detect Employment Vulnerability," Papers 2001.02783, arXiv.org.
    14. Ting Chi & Olabisi Adesanya & Hang Liu & Rebecca Anderson & Zihui Zhao, 2023. "Renting than Buying Apparel: U.S. Consumer Collaborative Consumption for Sustainability," Sustainability, MDPI, vol. 15(6), pages 1-16, March.
    15. Tobias Knabke & Sebastian Olbrich, 2018. "Building novel capabilities to enable business intelligence agility: results from a quantitative study," Information Systems and e-Business Management, Springer, vol. 16(3), pages 493-546, August.
    16. Ayhan, Fatih & Elal, Onuray, 2023. "The IMPACTS of technological change on employment: Evidence from OECD countries with panel data analysis," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    17. Caroline Lloyd & Jonathan Payne, 2021. "Fewer jobs, better jobs? An international comparative study of robots and ‘routine’ work in the public sector," Industrial Relations Journal, Wiley Blackwell, vol. 52(2), pages 109-124, March.
    18. Gilberto Santos & Jose Carlos Sá & Maria João Félix & Luís Barreto & Filipe Carvalho & Manuel Doiro & Kristína Zgodavová & Miladin Stefanović, 2021. "New Needed Quality Management Skills for Quality Managers 4.0," Sustainability, MDPI, vol. 13(11), pages 1-22, May.
    19. Harmancioglu, Nukhet & Grinstein, Amir & Goldman, Arieh, 2010. "Innovation and performance outcomes of market information collection efforts: The role of top management team involvement," International Journal of Research in Marketing, Elsevier, vol. 27(1), pages 33-43.
    20. Azilah Kasim & Siti Noormala Jailani & Muhammad Fauzi Mokhtar & Jasmine Zea Raziah Radha Rashid Radha & Bussalin Khuadthong & Maebel Leong Sai Fong, 2023. "Community Perceptions on the Critical Success Factors of Hotels’ Community-Based Corporate Social Responsibility," Sustainability, MDPI, vol. 15(12), pages 1-26, June.

    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:gam:jsusta:v:15:y:2023:i:14:p:11080-:d:1194908. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.