The Integration of Young People into the Labour Market within the European Union: The Role of Institutional Settings

Rolf K. W. van der Velden, Maarten H.J. Wolbers

Research output: Working paper / PreprintWorking paper

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Abstract

In this paper we investigate to what extent the labour market integration of young people within
the European Union is influenced by national institutional contexts of both the employment
system and the education/training system. For this purpose, data of the 1992-1997 European
Community Labour Force Surveys (ECLFS) were used. We looked at three important indicators
that capture the (lack of) labour market integration of youngsters: the odds of being unemployed,
the odds of having a temporary job and the odds of having a part-time job. To estimate
systematic variation between countries, multilevel analysis was applied in which variation within
countries between individuals and variation within countries between periods is statistically
controlled for. The results of this analysis showed that the labour market integration of young
people within the European Union is indeed systematically structured by national institutional
contexts. With regard to national institutional factors concerning labour market regulation, it is
primarily the employment protection of the existing labour force that has a damaging effect on
the integration process of youngsters. In countries with less strict employment protection
legislation, school-leavers find a (stable) labour market position more easily than in countries with
highly strict employment protection legislation. With regard to institutional characteristics of
education systems, it is clear that the presence of a dual system - as a workplace-based
vocational training system - improves the transition from school to work in a country.
Original languageEnglish
PublisherMZES
Number of pages31
Publication statusPublished - 2001

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