Transformations  in
Business & Economics

YOUTH UNEMPLOYMENT AMONG EU COUNTRIES - A CHALLENGE FOR SUSTAINABLE GROWTH AND SOCIAL COHESION
Gabriel Claudiu Mursa, Andreea-Oana Iacobuta, Oana-Ramona Socoliuc, Raluca-Irina Clipa, Alexandru Butiseaca

ABSTRACT. The future of the European Union was designed to be projected on the dimensions of sustainability and cohesion among member states. Even so, the reality of the last years has pointed out numerous discrepancies in terms of cultural background, economic, social or political aspects. Youth employment, as phenomenon able to detract from the normal path of sustainable growth and social cohesion, and the measures undertaken by national governments in order to address school to work transition illustrate important issues to be addressed, given the EU internal heterogeneity and the prominent problem of ageing population. Consequently, the aim of the present study is to analyse the amplitude of youth unemployment among EU economies, including the United Kingdom, as resultant of national policies implemented by the state. Employing a panel data analysis based on a dataset composed by macroeconomic factors, we attempt to investigate the manner in which labour market expenditure policies (highly linked to the educational system model), the minimum wage or real GDP per capita are responsible for the current unemployment rate among European young generation. As results highlight, those countries paying higher attention to education and training, apprenticeship, incentives for youth employment, rehabilitation are the most effective in reducing youth unemployment. Consequently, their real GDP per capita is increasing. Concerning the arbitrary minimum wage established by the state, this illustrates an additional pressure that is worsening unemployment rate, especially when it is closer to the average net wage established upon market principles .

KEYWORDS:  youth unemployment, educational system, labour market public expenditures, real GDP per capita.

JEL classification:  E24, J24, J64.