Youth Labour Market Integration Across Europe

ABSTRACT Young people in Europe face great difficulties nowadays when entering the labour market. Unemployment and temporary employment are high among youth, although considerable differences exist between European countries. In this article, we study to what extent cyclical, structural, and institutional factors explain cross-national variation in youth labour market integration. In addition, we examine educational differences in the impact of these macro-characteristics. To answer these questions, we use data on young people from 29 countries who were interviewed in the European Social Survey of 2002, 2004, 2006, or 2008 and left day-time education in the period 1992–2008. Both unemployment and temporary employment are regarded as a lack of labour market integration, compared to the situation of permanent employment. The empirical results first of all show that high unemployment hinders young people to smoothly integrate into the labour market. In addition, economic globalisation positively affects youth labour market integration. We also demonstrate that young people experience less difficulties with labour market integration as the educational system is more vocationally specific. Intermediate and higher educated particularly profit from the positive effect of the vocational specificity of the educational system. Finally, as the employment protection legislation of incumbent workers is stricter, young people experience more difficulties with labour market integration, especially higher educated youth.