IMF Working Papers

Mitigating Long-term Unemployment in Europe

By Nujin Suphaphiphat, Hiroaki Miyamoto

August 21, 2020

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Nujin Suphaphiphat, and Hiroaki Miyamoto. Mitigating Long-term Unemployment in Europe, (USA: International Monetary Fund, 2020) accessed November 12, 2024

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Summary

While unemployment rates in Europe declined after the global financial crisis until 2018/19, the incidence of long-term unemployment, the share of people who have been unemployed for more than one year to the total unemployed, remained high. Moreover, the COVID-19 pandemic could aggravate the long-term unemployment. This paper explores factors associated with long-term unemployment in European countries, using panel of 25 European countries over the period 2000–18. We find that skill mismatches, labor market matching efficiency, and labor market policies are associated with the incidence of long-term unemployment. Among different types of active labor market policies, training and start-up incentives are found to be effective in reducing long-term unemployment.

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

Publication Details

  • Pages:

    32

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2020/168

  • Stock No:

    WPIEA2020168

  • ISBN:

    9781513554464

  • ISSN:

    1018-5941