Recession effecting young people finding jobs

Contents

  1. Longer term issues
  2. Citation Tools
  3. Job prospects for the Class of 2018 are vastly different from 10 years ago
  4. Underemployment: Definition, Causes, Effects, Rate

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reACT -- Economy Affecting Employment For Young People

Young people and the post-recession labour market in the context of Europe Sonja Bekker. Hester Houwing. Article information. Article Information Volume: 18 issue: 3, page s : Article first published online: July 19, ; Issue published: August 1, Heejung Chung University of Kent. Sonja Bekker Tilburg University. Email: h.

Longer term issues

Abstract Full Text Abstract. English French German This article examines how the recent global recession, together with the general flexibilization of labour markets, is affecting young people. Keywords Young workers , economic recession , labour market insecurity , policy responses , Europe Sign Out. Email required Password required Remember me Forgotten your password? Need to activate?

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  1. Young people and the post-recession labour market in the context of Europe 2020.
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Article available in:. Vol 18, Issue 3, Maria da Paz Campos Lima and more James Higgins and more European View. Farewell to flexicurity? Austerity and labour policies in the European Union. Thomas Hastings and more Economic and Industrial Democracy. Crossref Kadri Taht and more Journal of Happiness Studies Oct For countries with a conservative welfare state e.

Southern European countries have the family as the main provider of support, since the welfare provisions are not substantial Ferrera ; Mayer ; Trifiletti ; thus, young adults in these countries leave their parents late, marry late and have children late or at least later than in other European countries Aassve et al. Welfare regimes are very closely interrelated with the cultural characteristics of each country.

In conservative regimes the welfare transfers are given only to the household head. This system incorporates a male-breadwinner and hierarchical family model, in which women and children are considered as dependents Breen and Buchmann The same is true in Southern European countries, but mainly because of scarce welfare provisions.

This cultural system of a male-dominated society reinforces the way and the timing in which both women and youth enter the labor market. Even with substantial changes over time, the female labor force participation remains lower than for men, and young adults have temporary or precarious jobs for longer time.

The opposite situation occurs in Social-democratic countries, where the egalitarian culture promotes gender equality, and where young adults are considered as independent and responsible individuals Buchmann Hence, not only because of generous welfare transfers, but also because of the cultural perception of young adults as active and autonomous members of the society, youth enters the labor market and separates from the family of origin very early. Finally, the liberal welfare regime supports an individualistic and competitive culture, in which young adults are also independent individuals, even though their choices and behavior can have riskier consequences due to a less generous welfare system.

These differences in welfare states, and the varying cultural and institutional aspects across countries, imply that the impact of the economic crisis was different in different settings Blossfeld et al.

Citation Tools

Given the unstable opportunity structure associated with the recession, and the deterioration in employment and earnings levels, young people likely adapted their behavior to improve their immediate and short-term living conditions. Consequently, their choices reflected the specific combination of the opportunities in the labor market, welfare state provisions, and family support in their country of residence Vogel More specifically, it looks at the proportion of young adults between age 22 and 30 who are working full-time and who are low-paid more on the definition of low-paid workers in the next section , and at the factors associated with their economic conditions, in particular education.

The Luxembourg Income Study LIS contains harmonized microdata from high- and middle-income countries around the world beginning in the late s and early s. National surveys were harmonized to create databases that are comparable and that allow researchers to examine similarities and differences across countries. LIS includes information on employment status, paid hours of work, and income. The analysis presented here examined data at four points in time , 1 , , in five countries, representative of the different patterns in the transition to adulthood and different typologies of welfare states: the US and the UK representing the liberal welfare state , Norway representing social-democratic welfare state , Germany representing conservative welfare state , and Spain representing Southern Europe.

The use of LIS had some limitations. First, given the harmonization process, some pieces of information included in the original data sets were lost, and not all the countries and all the years included the same variables. Also, sample sizes varied across countries, which affected reliability of the estimates in the countries with a smaller number of observations and affected the regression results on the pooled data driven by the countries with the largest sample size.

Despite these limitations, harmonized data in the LIS were unique because they included information on labor earnings for all countries and did not suffer from problems of missing values.

There were no other data sources comparing different developed countries with information on individual earnings that were harmonized and that started early enough to compare young adults economic conditions over time. The sample used in this work included individuals between age twenty-two and thirty at different points in time in order to observe changes before and after the crisis, but to also take into account continuing trends that were taking place before the onset of the crisis.

Following the definition used by Smeeding and Phillips , working full-time was defined as working more than 35 h per week and more than 40 weeks per year. The second step was to look at the economic conditions of young adults in the sample.

To do that, the OECD definition of low-paid workers was used, and the proportion of young adults who were low-paid was computed. Low-paid young adults were those earning wages less than two-thirds of median earnings. Therefore, the measure of earnings was constructed by computing the individual median income in each sample among those who were employed. This measure gives only a partial picture of the financial status of young adults. However, it does give a sense of the level of wages in each country, by age and sex, and shows changes in trends over time. Both measures were calculated using person weights included in the LIS to account for the sampling probability and the different age structures in different countries.

Given gender differences in paths into adulthood and different labor force participation rates, the analyses were performed separately for men and women. Next, several logistic regressions were performed to study the association between economic conditions of young adults and different individual and contextual characteristics: The first specification looked at the association between being low-paid and age, gender, year, and country of residence.

Job prospects for the Class of 2018 are vastly different from 10 years ago

Then, to explore possible differing trends between men and women over time, an interaction term between gender and year was added in the second specification. In the third specification, an interaction term between year and country variables was included, given the possibility that trends over time and the impact of the crisis differed across countries.

Past evidence showed that across all developed societies, young people from lower social classes usually leave school and start working earlier Bynner ; Muller and Shavit Hence, it is possible that they achieved a good financial position earlier. However, low levels of education are usually associated with unstable employment Arts and Gelissen ; Blossfeld et al.

Moreover, it is possible that the crisis affected different levels of education in different ways, therefore, an interaction term between year and education level was included in the fifth specification. To do that, the fifth specification described above was repeated including the variable enrollment in school equal to 1 if still in school, and 0 otherwise. This information on enrollment in school was not included in the , , and data for Norway. If the new predicted probabilities showed a flatter trend over time when enrollment in school was taken into account, especially for those with high education, it would be an indication that they decided to prolong education and postpone the entry into the labor market—consequently postponing the onset of earning wages.

The mean age in the sample was approximately twenty-six in all countries, and the proportion of women ranged between As expected, the proportion of people reporting a high level of education increased over time, except in Norway, where the proportion with a tertiary education was already high in The greatest increase was observed in the UK, where The smallest proportion of people with high education in was reported in Germany Differences across countries could be due to the fact that the expansion of education unfolded in different ways across countries, both its starting point and the rapidity of expansion.

Therefore, educational systems were not homogeneous. These differences should be considered when interpreting the results. The magnitude of the change was, however, quite diverse across countries. In the US, UK, and Norway, there was a small decrease from to , with a larger drop between and , which was most likely due to the hit of the crisis. In Spain, the trend in the percentage of young adults employed full-time was positive from to , but this figure dropped drastically in from Macro-level employment rates showed almost no change in Germany and Norway between and , with some fluctuations within the two periods.

Both the US and the UK reported an increase in the unemployment rate, from 4 to 9. Coherent with the micro-level statistics, Spain was the country that showed the largest deterioration: The unemployment rate went from It is worth noticing that the unemployment rate referred to the entire population in working age, and not only to the age range 22—30 considered in the analysis.

Generally, the proportion of young men working full-time decreased over time in all countries. The decrease was less evident in Norway for which we report the proportion employed and Germany. The trend was on a negative slope since the beginning of the twenty-first century, but the impact of the recession was very visible. Among young women, the situation was less clear-cut. If we look at the proportion of youth defined as low-paid , we observe a very similar trend among men and a quite clear impact of the crisis, especially in Spain, US and UK, where the proportion low-paid increased significantly between and Among women, the trend over time was increasing in all the countries considered here, except for Germany, where there was a decrease from In this section, the main factors associated with economic conditions of young adults were investigated.

Through a set of logistic regressions, 4 the predicted probability of being low-paid was computed depending on the year, country of residence, gender and level of education. The margins reported in Figs. Among men, the probability of being low-paid was always lowest among those with tertiary education, as expected. The levels were also quite comparable across countries. However, the trends over time differed across countries, and also showed a different impact of the economic recession. There was an increase in the predicted probability of being low-paid among young men starting in in US, UK, Germany, and Spain.

In Norway this increasing trend started in There was an increase in the probability of being low-paid also for those with low and medium education except than in Germany , especially after the crisis, but it is less pronounced than for those with high education. Very interestingly, across all countries, those who showed a larger increase in the probability of being low-paid between and were those with high education.

Underemployment: Definition, Causes, Effects, Rate

This can be due to education expansion over this period of time. Moreover, the probability of being low-paid kept increasing between and , which can be explained by the high populations of young men with tertiary education in the economic sectors most influenced by this crisis. However, it can also be due to the fact that these young men decided to stay longer in education possibly going into graduate school , given the unfavorable conditions of the job market.