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TACKLING DEMAND‐SIDE BARRIERS TO YOUTH EMPLOYMENT

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Abstract:

In general, youth employment tends to be highly sensitive to the aggregate economic situation. Macroeconomic policies which provide a suitable framework for expanding overall labour demand in a sustainable fashion are therefore crucial to enhance job prospects for young people. However, there are demand‐side issues more directly related to the labour market. High levels of wages, minimum wages or non‐wage labour costs are likely to create obstacles to youth employment. Overly strict employment protection legislation (EPL) can also serve as a disincentive for employers wanting to hire young workers. Some workplace practices might also function as an impediment to the smooth transition from school to work. Among the various issues on the demand side, this chapter focuses on employment practices, wages and non‐wage labour costs, and employment regulations with a view to highlighting possible future reform agendas.

Document Type: Review Article

Publication date: 2008-12-01

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