Mitigating Long-term Unemployment in Europe
IMF Working Papers, August 21, 2020
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- Mitigating Long-term Unemployment in Europe
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Bibliographic details
- Authors: Nujin Suphaphiphat, Hiroaki Miyamoto
- Published: August 21, 2020
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781513554464.001
Summary
- Title: Mitigating Long-term Unemployment in Europe
- Authors: Nujin Suphaphiphat, Hiroaki Miyamoto
- Date: August 21, 2020
- Core focus: The incidence of long-term unemployment (the share of people who have been unemployed for more than one year to the total unemployed) in Europe and factors associated with it.
- Scope: Panel of 25 European countries over the period 2000–18.
- Key contextual point: While unemployment rates in Europe declined after the global financial crisis until 2018/19, the incidence of long-term unemployment remained high. The COVID-19 pandemic could aggravate long-term unemployment.
Empirical approach and data
- Sample: 25 European countries.
- Time period: 2000–18.
- Outcomes studied: Incidence of long-term unemployment (LTU), defined as the share of people unemployed for more than one year to the total unemployed.
- Report length and identifiers:
- Pages: 32
- Volume: 2020
- Issue: 168
- Series: Working Paper No. 2020/168
- DOI: https://doi.org/10.5089/9781513554464.001
- Stock No: WPIEA2020168
- ISBN: 9781513554464
- ISSN: 1018-5941
Main findings
- Skill mismatches are associated with higher incidence of long-term unemployment.
- Labor market matching efficiency is associated with the incidence of long-term unemployment.
- Labor market policies are associated with the incidence of long-term unemployment.
- Among different types of active labor market policies, the following are found to be effective in reducing long-term unemployment:
- Training
- Start-up incentives
Policy implications and recommendations
- Prioritize interventions that address skill mismatches to reduce LTU.
- Improve labor market matching efficiency to lower the incidence of LTU.
- Emphasize active labor market policies with demonstrated effectiveness:
- Expand training programs targeted at unemployed workers.
- Implement or scale start-up incentives that encourage entrepreneurship by the unemployed.
Subject classification and keywords
- Subject: Active labor market policies, Employment, Labor, Labor market policy, Labor markets, Unemployment
- Keywords: active labor market policies, Active labor market policies, active labor market policy, Employment, employment incentive, EU labor markets, Europe, incidence, incidence of LTU, labor market matching efficiency, Labor market policy, Labor markets, Long-term unemployment, LTU, LTU rate, start-up incentive, Unemployment, WP
IMF Working Paper — Mitigating Long-term Unemployment in Europe, Nujin Suphaphiphat and Hiroaki Miyamoto, Working Paper No. 2020/168, August 21, 2020.
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- Working Paper