Mitigating Long-term Unemployment in Europe
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Summary:
While unemployment rates in Europe declined after the global financial crisis until 2018/19, the incidence of long-term unemployment, the share of people who have been unemployed for more than one year to the total unemployed, remained high. Moreover, the COVID-19 pandemic could aggravate the long-term unemployment. This paper explores factors associated with long-term unemployment in European countries, using panel of 25 European countries over the period 2000–18. We find that skill mismatches, labor market matching efficiency, and labor market policies are associated with the incidence of long-term unemployment. Among different types of active labor market policies, training and start-up incentives are found to be effective in reducing long-term unemployment.
Series:
Working Paper No. 2020/168
Subject:
Active labor market policies Employment Labor Labor market policy Labor markets Unemployment
Frequency:
regular
English
Publication Date:
August 21, 2020
ISBN/ISSN:
9781513554464/1018-5941
Stock No:
WPIEA2020168
Pages:
32
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