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Youth Labour Market outcomes: The option of « flexicurity » Sandrine Cazes ILO-SRO Budapest

Youth Labour Market outcomes: The option of « flexicurity » Sandrine Cazes ILO-SRO Budapest. Introduction. Presentation based on different (research) papers

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Youth Labour Market outcomes: The option of « flexicurity » Sandrine Cazes ILO-SRO Budapest

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  1. Youth Labour Market outcomes: The option of « flexicurity » Sandrine Cazes ILO-SRO Budapest 10-13 November, Belgrade.

  2. Introduction • Presentation based on different (research) papers • Goals: provide some tracks on possible workers organization’ role in improving youth LM situation-in particular in the debate on LM regulation and its impact on LM outcomes 10-13 November, Belgrade.

  3. Outline of presentation • Overview of the reasons behind youth labour market outcomes • The effect of LM regulation on LM outcomes: theoretical and empirical considerations • The option of “flexicurity” 10-13 November, Belgrade.

  4. Determinants of youth Labour market outcomes • Not specific to youth (overall conditions) • Aggregate demand • Skill mismatch • Role of Labour market regulations 10-13 November, Belgrade.

  5. Determinants (cont.) • More specific to young people • Demographics (size of youth cohort) • Education • Wages / Labour Cost • Reluctance to hire first job seekers • Barriers to access self-employment • Role of Labour market regulation 10-13 November, Belgrade.

  6. Youth unemployment 10-13 November, Belgrade.

  7. Youth unemployment 10-13 November, Belgrade.

  8. Role of Labour market regulation • Hotly debated (for ex. IFIs have played a key role providing advices and policies prescritions on the topic). • Generally, blaming the « rigidity » of the labour markets, with their full range of labour protection, for their poor performances. 10-13 November, Belgrade.

  9. Role of Labour Market regulation on LM outcomes • No systematic nor clear-cut results on the impact of LM regulation on labour market outcomes • Theoretical considerations • The evidence 10-13 November, Belgrade.

  10. An example: the role of EPL Employment protection legislation Theoretical arguments • EPL generates a number of effects on labour costs, E and productivity, some favourable and some unfavourable. • Models suggest that stricter EPL may contribute to lower participation rates and employment, higher unemployment (LTU) and contribute to significant LM segmentation. • Theory also suggests that stricter EPL may increase informal employment 10-13 November, Belgrade.

  11. Role of EPL (cont.) Evidence • Macro/micro/over time analysis (OECD Job study, Eo 99, Nickell, Bertola, etc.). • EPL has little or no effect on overall unemployment, but may have affect its composition; EPL may have a positive effect on the employment rate for certain groups of workers; 10-13 November, Belgrade.

  12. Role of LM regulation on LM outcomes • In the same line, the impact of: • Unemployment benefit system • Minimum wage … could be discussed as there are no systematic nor clear-cut results on the impact of LM regulation on LM outcomes 10-13 November, Belgrade.

  13. Role of LM regulation on LM outcomes • Need to capture the complexity of the institutional settings and their interactions • Identify the various combinations of employment & social protection systems available to achieve a good balance between flexibility and security 10-13 November, Belgrade.

  14. Flexicurity as an option • Workers organizations need to be aware of these trade-offs, in particular as: • Policies promoting social dialogue, LM stability & higher E, rather than pure deregulation should clearly be on the political agenda of transition countries. • « Flexicurity » as an option 10-13 November, Belgrade.

  15. Flexicurity as an option • Presentation of the concept • A way of enhancing the role of SP in the formulation, implementation and monitoring of Employment policies • Important as LMI may have different effects on specific social groups, such as young people 10-13 November, Belgrade.

  16. Flexicurity as an option • Need for a fine-tuning approach • There are alternative to pure flexibilization • Social dialogue is an important tool 10-13 November, Belgrade.

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