Youth unemployment in old Europe: The polar cases of France and Germany

• Published in: IZA journal of European labor studies Vol. 2; no. 1; pp. 1 - 23
• Main Authors: Cahuc, Pierre, Carcillo, Stéphane, Rinne, Ulf, Zimmermann, Klaus F
• Format: Journal Article
• Language: English
• Published: Heidelberg Springer 01.12.2013; Springer Berlin Heidelberg
• Subjects: Demographic trends; Economics; Economics and Finance; Employment protection; European Integration; Great recession; Humanities and Social Sciences; Labor Economics; Labor market institutions; Labor policy; Minimum wages; Original Article; Population Economics; Vocational education and training; Youth unemployment; Demographic trends; Labor market institutions; Minimum wages; Labor policy; Great recession; Vocational education and training; Employment protection; Youth unemployment; Unemployment Protection; Labor Market Institutions; Demographic Trends; Minimum Wages; Youth Unemployment; Vocational Education and Training; Labor Policy; Great Recession
• ISSN: 2193-9012; 2193-9012
• DOI: 10.1186/2193-9012-2-18

France and Germany are two polar cases in the European debate about rising youth unemployment. Similar to what can be observed in Southern European countries, a 'lost generation' may arise in France. In stark contrast, youth unemployment has been on continuous decline in Germany for many years, hardly affected by the Great Recession. This paper analyzes the diametrically opposed developments in the two countries to derive policy lessons. As the fundamental differences in youth unemployment primarily result from structural differences in labor policy and in the (vocational) education system, short-term oriented policies do not address the core of the problems. Ultimately, the youth unemployment disease in France and in other European countries has to be cured with structural reforms.