The Short- and Long-Run Impacts of Financial Crises on Youth Unemployment in OECD Countries
Posted: 11 Nov 2018
Date Written: 2017
The impact of financial crises on the youth unemployment rate (YUR), compared to the total unemployment rate (UR), is estimated for a panel of OECD countries over the period 1981–2009, using bias-corrected dynamic panel data estimators of short- and long-run coefficients. Both YUR and UR are found highly persistent. Also, short- and long-run effects of financial crises on YUR are significantly large, respectively, some 1.9 and 1.5–1.7 times higher than the short- and long-run effects on UR. Similar results are found for the unemployment impacts of GDP growth lagged 1 year and institutional variables. These results are robust to various dynamic specifications.
Keywords: Bias-Corrected LSDV, Dynamic Panel Data, Financial Crises, Youth Unemployment
JEL Classification: J48, J68, G01, J60
Suggested Citation: Suggested Citation