Abstract

Youth unemployment varies substantially across European countries. The project aims to gain insight into the reasons for theses international differences. While most studies analyze the importance of the macroeconomic framework and national labor market institutions, we pay special attention to the cognitive abilities of young people, obtained from the PISA studies (Programme for International Student Assessment). If a relationship between the cognitive skills and the labor market position of young people is found, even controlling for the above mentioned factors, it can be concluded that cross-country differences arise much earlier in life and more emphasis should be put in the educational system.