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Forsythe, Eliza (2022): Why Don't Firms Hire Young Workers During Recessions? In: The Economic Journal, Jg. 132, H. 645, S. 1765-1789. DOI:10.1093/ej/ueab096

Abstract

"Recessions are known to be particularly damaging to young workers' employment outcomes. I find that during recessions the hiring rate falls faster for young workers than for more experienced workers. I show that this cannot be explained by the composition of jobs or workers' labour supply decisions, and I conclude that firms preferentially hire experienced workers during periods of high unemployment. I develop a new model of cyclical upgrading that relaxes the classic assumptions of exogenous firm size and rigid wages. I show that this model predicts larger log wage decreases during recessions for young workers than for experienced workers, a prediction that is supported by the data. I conclude that policymakers should consider extending unemployment insurance coverage during recessions to new labour market entrants." (Author's abstract, IAB-Doku) ((en))

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Schwartz, Amy Ellen, Jacob Leos‐Urbel, Joel McMurry & Matthew Wiswall (2021): Making Summer Matter: The Impact Of Youth Employment On Academic Performance. In: Quantitative Economics, Jg. 12, H. 2, S. 477-504. DOI:10.3982/QE883

Abstract

"This paper examines New York City's Summer Youth Employment Program (SYEP). SYEP provides jobs to youth ages 14–24, and due to high demand for summer jobs, allocates slots through a random lottery system. We match student‐level data from the SYEP program with educational records from the NYC Department of Education and use the random lottery to estimate the effects of SYEP participation on a number of academic outcomes, including test taking and performance. We find that SYEP participation has positive impacts on student academic outcomes, and these effects are particularly large for students who participate in SYEP multiple times." (Author's abstract, IAB-Doku) ((en))

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Edwards, Kathryn Anne & Jeffrey B. Wenger (2019): Parents with an Unemployed Adult Child: Consumption, Income, and Savings Effects. In: IZA journal of labor economics, Jg. 8, H. 1, S. 1-44. DOI:10.2478/izajole-2019-0001

Abstract

"The risk of labor market, health, and asset-value shocks comprise profound retirement savings challenges for older workers. Parents, however, may experience added risk if their children experience adverse labor market shocks. Prior research has shown that parents support their children financially through an unemployment spell. In this paper, we also provide evidence of financial support from parents and investigate if this financial support is accompanied by adjustments to parental consumption, income, or savings behavior. With longitudinal data on mothers and children from the Panel Study of Income Dynamics, we use within-mother variation in behavior to identify the effect of a child’s labor market shock on parent outcomes. We find evidence of a decline in consumption, an increase in labor supply, and a decrease retirement savings, though the results are heterogenous among mothers. Our results point to aggregate inefficiencies and inequities that may result from family risk sharing." (Author's abstract, IAB-Doku) ((en))

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Sansale, Rebecca, Stephen B. DeLoach & Mark Kurt (2019): Unemployment duration and the personalities of young adults workers. In: Journal of Behavioral and Experimental Economics, Jg. 79, H. April, S. 1-11. DOI:10.1016/j.socec.2019.01.002

Abstract

"As in many countries, young adult workers in the United States have experienced tremendous employment volatility in recent years. In this paper, we examine the role personality plays in determining the duration of unemployment among young adults in the United States between 2008 and 2015. Evidence from estimation of a Competing Risks Model shows that when faced with unemployment, conscientious individuals are significantly more likely to find employment. Individuals scoring higher in neuroticism are more likely to leave the workforce and less likely to go back to school, while more agreeable individuals are more likely to go back to school. Because personality remains malleable for young adults, these results have implications for the literature related to job-search behavior as well as for educational and job-training programs." (Author's abstract, © 2019 Elsevier) ((en))

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Strittmatter, Anthony (2019): Heterogeneous earnings effects of the job corps by gender. A translated quantile approach. In: Labour Economics, Jg. 61. DOI:10.1016/j.labeco.2019.101760

Abstract

"Several studies of the Job Corps tend to find more positive earnings effects for males than for females. This effect heterogeneity favouring males contrasts with the results of the majority of other training programmes’ evaluations. Applying the translated quantile approach of Bitler, Hoynes, and Domina (2014), I investigate a potential mechanism behind the surprising findings for the Job Corps. My results provide suggestive evidence that the effect of heterogeneity by gender operates through existing gender earnings inequality rather than Job Corps trainability differences." (Author's abstract, IAB-Doku, © 2020 Elsevier) ((en))

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Balcazar, Fabricio E., Jessica Awsumb, Shawn Dimpfl, F. L. Fredrik G. Langi & Jazmin Lara (2018): Jobs for youth program. An intervention to improve transition outcomes of former dropout minority youth. In: Career Development and Transition for Exceptional Individuals, Jg. 41, H. 3, S. 166-174. DOI:10.1177/2165143417747225

Abstract

"This study describes an intervention developed to implement several best transition practices with a high risk/high need population. In all, 116 students with disabilities from a charter school for dropouts participated. All students were interviewed at different points in time to track their progress as they completed the program. Records of participant's activities and outcomes were collected. Results suggest a positive impact on students' graduation rate (95%), enrollment in vocational rehabilitation (100%), proportion of students obtaining certificates for employment (56%), and paid internship (37%). Overall, 35% of the vocational rehabilitation cases were closed successfully with students meeting the 90-day employment requirement after graduation. Results inform future work on the implementation of interventions designed to help low-income minority youth with disabilities." (Author's abstract, IAB-Doku) ((en))

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O'Higgins, Niall & Valentino Moscariello (2017): Labour market institutions and youth labour markets. Minimum wages and youth employment revisited. (Employment working paper 223), Genf, 27 S.

Abstract

"This paper mainly focuses on the issue of interactions between labour market institutions and policies and their effects on youth labour markets, and is primarily concerned with issues grouped under pillars 1 and 3 of youth employment policy as identified by the resolution issued in 2012 by the International Labour Conference calling for action on the youth employment crisis. These institutions also have implications for pillar 5, young people's rights at work. The paper reports the results of a meta-analysis of the youth employment effects of minimum wage legislation. The main contribution of the paper, however, concerns the role of other labour market institutions in determining the size of the dis-employment effects of minimum wages in youth labour markets." (Author's abstract, IAB-Doku) ((en))

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Schoon, Ingrid & John Bynner (Hrsg.) (2017): Young people's development and the great recession. Uncertain transitions and precarious futures. Cambridge: Cambridge University Press, 487 S. DOI:10.1017/9781316779507

Abstract

"The 2007 - 8 financial crisis and subsequent 'Great Recession' particularly affected young people trying to make their way from education into the labour market at a time of economic uncertainty and upheaval. This is the first volume to examine the impact of the Great Recession on the developmental stage of young adulthood, a critical phase of the life course that has great significance in the foundations of adult identity. Using evidence from longitudinal data sets spanning three major OECD countries, these essays examine the recession's effects on education and employment outcomes and consider the wider psycho-social consequences, including living arrangements, family relations, political engagement, and health and well-being. While the recession intensified the impact of pre-existing trends towards a prolonged dependence on parents and, for many, the precaritisation of life chances, the findings also point to manifestations of resilience, where young people countered adversity by forging positive expectations of the future." (Publisher information, IAB-Doku) ((en))

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Tolgensbakk, Ida, Janikke Solstad Vedeler & Bjørn Hvinden (2017): Youth unemployment and the consequences for life satisfaction and social trust in seven European countries. (NEGOTIATE working paper 4.4), Oslo, 58 S.

Abstract

"The 2007-2008 global financial crisis led to the 'Great Recession', making a multi-year debt crisis a reality for several Eurozone countries. These developments had large and persistent effects on European youth labour markets, causing high unemployment rates among the youth in many countries. In an effort to understand the subjective effects of youth unemployment in Europe, the NEGOTIATE project conducted life story interviews with 211 individuals from seven countries and three cohorts (1950 - 1955, 1970 - 1975 and 1990 - 1995). The participating countries were Bulgaria, the Czech Republic, Germany, Greece, Norway, Poland and the UK. The Norwegian team has written the present report, with important inputs from all the participating national teams." (Author's abstract, IAB-Doku) ((en))

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Cockx, Bart (2016): Do youths graduating in a recession incur permanent losses? Penalties may last ten years or more, especially for high-educated youth and in rigid labor markets. (IZA world of labor 281), Bonn, 11 S. DOI:10.15185/izawol.281

Abstract

"The Great Recession that began in 2008 - 2009 dramatically increased youth unemployment. But did it have long-lasting, adverse effects on the careers of youths? Are cohorts that graduate during a recession doomed to fall permanently behind those that graduate at other times? Are the impacts different for low- and high-educated individuals? If recessions impose penalties that persist over time, then more government outlays are justified to stabilize economic activity. Scientific evidence from a variety of countries shows that rigid labor markets can reinforce the persistence of these setbacks, which has important policy implications." (Author's abstract, IAB-Doku) ((en))

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Chen, Xuan, Carlos A. Flores & Alfonso Flores-Lagunes (2015): Going beyond LATE. Bounding average treatment effects of job corps training. (IZA discussion paper 9511), Bonn, 42 S.

Abstract

"We derive nonparametric sharp bounds on average treatment effects with an instrumental variable (IV) and use them to evaluate the effectiveness of the Job Corps (JC) training program for disadvantaged youth. We concentrate on the population average treatment effect (ATE) and the average treatment effect on the treated (ATT), which are parameters not point identified with an IV under heterogeneous treatment effects. The main assumptions employed to bound the ATE and ATT are monotonicity in the treatment of the average outcomes of specified subpopulations, and mean dominance assumptions across the potential outcomes of these subpopulations. Importantly, the direction of the mean dominance assumptions can be informed from data, and some of our bounds do not require an outcome with bounded support. We employ these bounds to assess the effectiveness of the JC program using data from a randomized social experiment with non-compliance (a common feature of social experiments). Our empirical results indicate that the effect of JC on eligible applicants (the target population) four years after randomization is to increase weekly earnings and employment by at least $24.61 and 4.3 percentage points, respectively, and to decrease yearly dependence on public welfare benefits by at least $84.29. Furthermore, the effect of JC on participants (the treated population) is to increase weekly earnings by between $28.67 and $43.47, increase employment by between 4.9 and 9.3 percentage points, and decrease public benefits received by between $108.72 and $140.29. Our results also point to positive average effects of JC on the labor market outcomes of those individuals who decide not to enroll in JC regardless of their treatment assignment (the so-called never takers), suggesting that these individuals would indeed benefit from participating in JC." (Author's abstract, IAB-Doku) ((en))

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Graham, John R., Micheal L. Shier & Marilyn Eisenstat (2015): Young adult social networks and labour market attachment. Interpersonal dynamics that shape perspectives on job attainment. In: Journal of social policy, Jg. 44, H. 4, S. 769-786. DOI:10.1017/S0047279415000276

Abstract

"Following a qualitative study design with young adults (aged seventeen to twenty-nine) of a racialised minority status (n = 36) in a low-income community in Toronto, Canada, we found that social relationships and dynamics greatly influenced perspectives towards labour market success. Respondents identified that interpersonal relationships with employers, family members and neighbourhood/community members influenced their perseverance and motivation for upward social mobility through securing and maintaining employment. The findings highlight the fundamental relationship between perceptions of upward social mobility and individual social capital. In particular, the wide array of social networks that can influence the perspectives of racial minority young adults - both positively and negatively. The findings extend contemporary discussions about the relationship between social capital and career aspirations among racial minority young adults, to include a spectrum of interrelated social networks that collectively aid in improving personal development. While contemporary discussions focus on the utility of informal knowledge sharing about career development and post-secondary attainment, the findings here demonstrate the importance of policy and programme solutions that support the mobilisation of a wider array of embedded social resources, within the social networks of racial minority young adults, that help support positive perceptions towards upward social mobility." (Author's abstract, IAB-Doku) ((en))

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Gorry, Aspen (2013): Minimum wages and youth unemployment. In: European Economic Review, Jg. 64, H. November, S. 57-75. DOI:10.1016/j.euroecorev.2013.08.004

Abstract

"This paper constructs a labor search model to explore the effects of minimum wages on youth unemployment. To capture the gradual decline in unemployment for young workers as they age, the standard search model is extended so that workers gain experience when employed. Experienced workers have higher average productivity and lower job finding and separation rates that match wage and worker flow data. In this environment, minimum wages can have large effects on unemployment because they interact with a worker's ability to gain job experience. The increase in minimum wages between 2007 and 2009 can account for a 0.8 percentage point increase in the steady state unemployment rate and a 2.8 percentage point increase in unemployment for 15-24 year old workers in the model parameterized to simulate outcomes of high school educated workers. Minimum wages can also help explain the high rates of youth unemployment in France compared to the United States." (Author's abstract, IAB-Doku) ((en))

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Rein, Volker (2013): Pathways to Prosperity - Entwicklungen des Work Based Learning in den USA. In: Berufsbildung in Wissenschaft und Praxis, Jg. 42, H. 5, S. 26-29.

Abstract

"Zur Verbesserung der chronisch defizitären Fachkräfteausbildung wird in den USA seit Längerem eine Ausweitung des Work Based Learning gefordert. Dieses Konzept der beruflichen Qualifizierung ist in den USA im Spannungsfeld von Bildung und beruflichem Training seit Beginn des 20. Jahrhunderts in unterschiedlichen Varianten und Zielstellungen entwickelt worden. Mit der aktuellen Initiative 'Pathways to Prosperity', die vonseiten der Wirtschaft, Wissenschaft und Politik gefördert wird, erhält die theorie-praxisverzahnte Qualifizierung neuen Aufschwung und wird in den USA zunehmend bildungsbereichsübergreifend diskutiert. Im Beitrag werden diese Entwicklungen und Diskussionen nachgezeichnet." (Autorenreferat, IAB-Doku)

Abstract

"Timely support for young unemployed is essential for a smooth transition into the labour market. The first youth guarantees (measures that reduce the time a young person spends not in employment, education or training) were introduced by the Nordic European countries in 1980s and 1990s. Similar programmes to reduce the inactivity period of youth have been put in place more recently in Austria, Germany, the Netherlands and Poland, and more European countries will be introducing similar measures following Youth Guarantee Recommendation agreed by the EU's Council of Employment and Social Affairs Ministers in February 2013.
In 2013 and 2014, following up on its earlier work on Local Youth Employment Strategies, the OECD Local Economic and Employment Development Programme is undertaking a review of the implementation of youth guarantee in 8 European countries to identify key conditions and success factors and provide a set of practical policy recommendations relevant to national and local policy makers and practitioners. The final report will be presented at the 10th Annual meeting of the OECD Forum on Partnerships and Local Development in Stockholm on 24-25 April 2014." (Author's abstract, IAB-Doku) ((en))

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Kawaguchi, Daiji & Tetsushi Murao (2012): Who bears the cost of the business cycle? Labor-market institutions and volatility of the youth unemployment rate. In: IZA journal of labor policy, Jg. 1, S. 1-28. DOI:10.1186/2193-9004-1-10

Abstract

"The way age-specific unemployment rates fluctuate over the business cycle differs significantly across countries. This paper examines the effect of labor-market institutions on the fluctuations of age-specific unemployment rates based on panel data of 18 OECD countries between 1971 and 2008. Empirical results suggest that the cost of the business cycle disproportionately falls on youths in countries with stricter employment protection. This implies that a higher adjustment cost of an existing workforce induces the employment adjustment of new entrants into the labor market." (Author's abstract, IAB-Doku) ((en))

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Noelke, Clemens (2011): The consequences of employment protection legislation for the youth labour market. (Mannheimer Zentrum für Europäische Sozialforschung. Arbeitspapiere 144), Mannheim, 34 S.

Abstract

"Understanding the causes of unemployment and job insecurity among young people remains a central concern for social scientists and policy makers. This study focuses on one potential institutional cause of high youth unemployment, employment protection legislation (EPL). While many are sceptical of a link between EPL and high aggregate unemployment rates, a consensus has emerged linking EPL to high youth unemployment in particular. The review of theoretical and empirical research conducted here challenges this consensus. Search and matching theoretic explanations have difficulty making unambiguous predictions about the effects of EPL on youth unemployment and empirical research has undertaken little effort to uncover its causal effects. The empirical analysis tests for the existence of aggregate employment effects of EPL across youth labour markets using aggregate data from affluent OECD countries (1985 - 2007) and individual data from labour force surveys for 15 Western European countries and the U.S. (1992 - 2007). It conducts conventional regression analyses and also implements a Difference-in-Difference design. Neither conventional nor Difference-in-Difference analyses yield any robust evidence whatsoever linking either dimension of EPL to inferior youth labour market performance, for any of the education groups or institutional conditions tested. Altogether, this study rejects the view that strict EPL is or has been the cause of high youth unemployment rates or low youth employment rates, at least for the sample of countries tested here." (Author's abstract, IAB-Doku) ((en))

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O'Higgnis, Niall (2010): The impact of the economic and financial crisis on youth employment. Measures for labour market recovery in the European Union, Canada and the United States. (Employment working paper 70), Geneva, 69 S.

Abstract

"This paper looks at the effects of the economic and financial crisis on the labour market experiences of young people in the European Union, Canada and the United States and discusses the policy responses which have thus far been introduced in an attempt to mitigate these deleterious effects." (Text excerpt, IAB-Doku) ((en))

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Osgood, D. Wayne, E. Michael Foster, Constance Flanagan & Gretchen R. Ruth (Hrsg.) (2005): On your own without a net. The transition to adulthood for vulnerable populations. (The John D. and Catherine T. Macarthur Foundation series on mental health and development Research Network on Transitions to Adulthood), Chicago: University of Chicago Press, 401 S.

Abstract

"In the decade after high school, young people continue to rely on their families in many ways-sometimes for financial support, sometimes for help with childcare, and sometimes for continued shelter. But what about those young people who confront special difficulties during this period, many of whom can count on little help from their families? On Your Own Without a Net documents the special challenges facing seven vulnerable populations during the transition to adulthood: former foster care youth, youth formerly involved in the juvenile justice system, youth in the criminal justice system, runaway and homeless youth, former special education students, young people in the mental health system, and youth with physical disabilities. During adolescence, government programs have been a major part of their lives, yet eligibility for most programs typically ends between the ages of eighteen and twenty-one. This critical volume shows the unfortunate repercussions of this termination of support and points out the issues that must be addressed to improve these young people's chances of becoming successful adults." (Author's abstract, IAB-Doku) ((en))

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Stidham, Helen H. & Theodore P. junior Remley (1992): Job club methodology applied in a workfare setting. In: Journal of Employment Counseling, Jg. 29, H. 2, S. 69-76. DOI:10.1002/j.2161-1920.1992.tb00155.x

Abstract

"The Job Club program consisted of a series of monthly groups, meeting daily for 15-20 three-hour sessions conducted in the Azrin Job Club methodology. Results indicate that those clients attending the Job Club sessions had a higher employment rate than did those not attending." (Author's abstract, Published by arrangement with John Wiley & Sons) ((en))