Youth and gender-specific unemployment and Okun's law in Germany and Poland

Sophie Dunsch

No 397, Discussion Papers from European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics

Abstract: The unemployment rates, especially youth unemployment rates, increased in various countries of Europe over the last years. This paper examines gender-specific youth unemployment developments in Germany and Poland with Okun's law to test the hypothesis that young male employees are more vulnerable to the business cycle. I estimate gender- and country-specific Okun coefficients for five different age cohorts. The results show that young men are more sensitive to the business cycle, while for women the reaction is less strong. A further examination of the different labour markets regarding genderspecific youth employment results in policy recommendations beyond GDP growth, such as a reduction of the discrepancy in employment protection between permanent and temporary contracts and an approach to maintain youth connected to the labour market.

Keywords: Youth Unemployment; Okun's Law; Poland; Germany (search for similar items in EconPapers)
JEL-codes: E24 E32 J64 (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-eur, nep-mac and nep-tra
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:euvwdp:397

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