Declining Youth Unemployment in Europe: The Effect of the Business Cycle or the European Youth Guarantee?
by Mikkel Barslund, Daniel Gros (September, 2017)
A fresh look at youth unemployment in Europe finds that it is not the huge societal problem previously thought, but rather that general unemployment merits closer attention.
In 2012, youth unemployment took centre stage as a European policy issue. It was on the agenda of successive European Councils and became the target of many policy initiatives aimed at fighting youth unemployment, with the adoption of the Youth Guarantee as the central piece of European legislation. The latter committed member states to offer their young people, within four months of becoming unemployed or finished education, either employment, apprenticeship/traineeship or further education. In addition the initiative made available around €3 billion of funding from the Commission to support young people living in regions with youth unemployment higher than 25%.
At the time these initiatives were being rolled out, Mikkel Barslund and Daniel Gros were critical of the singular focus on youth unemployment in the public debate, arguing that public spending is always about trade-offs and there is never a shortage of good causes to which funds can be allocated. In this new paper, they argue that in most countries youth unemployment is not a large stand-alone societal problem but rather that general unemployment is the problem. In this article, the two CEPS economists take a fresh look at youth unemployment and how it measures up against overall unemployment. They find that the literature is far from clear on the crucial question of whether being unemployed when young carries a larger scar than for older workers and conclude, in fact, that there is little reason to prioritise jobs for youth over jobs for adults.
by Frank Cowell, Brian Nolan, Javier Olivera, Philippe Van Kerm (September, 2017)
Although it is heartening to see wealth inequality being taken seriously, key concepts are often muddled, including the distinction between income and wealth, what is included in “wealth”, and facts about wealth distributions. This chapter highlights issues that arise in making ideas and facts about wealth inequality precise, and employs newly-available data to take a fresh look at wealth and wealth inequality in a comparative perspective. The composition of wealth is similar across countries, with housing wealth being the key asset. Wealth is considerably more unequally distributed than income, and it is distinctively so in the United States. Extending definitions to include pension wealth however reduces inequality substantially. Analysis also sheds light on life-cycle patterns and the role of inheritance. Discussion of the joint distributions of income and wealth suggests that interactions between increasing top income shares and the concentration of wealth and income from wealth towards the top is critical.
by Magnus Piirits, Andres Võrk (September, 2017)
We update the health insurance long-term forecast model with new data to assess the long-term financial sustainability of health insurance and test the impact of scenarios on sustainability. The originaal model was created during the periood 2013-2014, you can read about it here.
After updating the model, it is possible to assess how future health insurance revenues and costs will change in the light of current situation and considering the latest economic and population forecast. Significant value added in the model is the modelling of scenarios which provides an opportunity to assess the impact of changing health care system to financial sustainability. For example, how does the payment of social tax for non-working retirees and the additional costs affect the health insurance revenues and expenses and the reserves of the Estonian Health Insurance Fund.
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Annual Geary Lecture – Precarious Lives: Insecurity, Exclusion and Well-Being in Advanced Capitalist Democracies
Time and place: 16/11/2017 in Dublin, Ireland
Speaker: Arne L. Kalleberg, University of North Carolina at Chapel Hill The ESRI’s annual Geary Lecture will be held on 16 November. It will be delivered by Arne L. Kalleberg, University of North Carolina at Chapel Hill. Precarious Lives: Insecurity, Exclusion and Well-Being in Advanced Capitalist Democracies Precarious work (i.e., work that is insecure and uncertain, often … Continued
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