Social Investment and Youth Labor Market Participation

16 Pages Posted: 6 May 2020

See all articles by Giulio Ecchia

Giulio Ecchia

University of Bologna - Department of Economics

Francesca Gagliardi

University of Hertfordshire - Business School

Caterina Giannetti

University of Jena; University of Bologna - Department of Economics

Date Written: April 2020

Abstract

In this paper, we first rely on small area techniques to derive from EU statistics on income and living conditions (EU‐SILC) survey new indicators of compensatory and social‐investment policies at regional level. While compensatory policies have mainly the goal of protecting individuals from “old” risks (e.g., old‐age), investment‐related social policies tend to focus more on “new social risks” (e.g., skill deficits). We rely on these new indicators to perform a data‐driven structural vector autoregressive (SVAR) analysis to investigate the causal relationships between youth labor market outcomes and these two types of spending. Our results support the view that social‐investment policies are effective for tackling new social challenges.

JEL Classification: C18, C54, E02

Suggested Citation

Ecchia, Giulio and Gagliardi, Francesca and Giannetti, Caterina, Social Investment and Youth Labor Market Participation (April 2020). Contemporary Economic Policy, Vol. 38, Issue 2, pp. 343-358, 2020, Available at SSRN: https://ssrn.com/abstract=3593686 or http://dx.doi.org/10.1111/coep.12446

Giulio Ecchia (Contact Author)

University of Bologna - Department of Economics ( email )

Via Saragozza, 8
Bologna, 40125
Italy

Francesca Gagliardi

University of Hertfordshire - Business School ( email )

Hatfield, AL10 9AB
United Kingdom

Caterina Giannetti

University of Jena ( email )

Furstengraben 1
Jena, Thuringa 07743
Germany

University of Bologna - Department of Economics ( email )

Strada Maggiore 45
Bologna, 40125
Italy

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