Young people and the Great Recession

an article by David N. F. Bell (Stirling Management School, University of Stirling, IZA, and CPC) and David G. Blanchflower (Dartmouth College, Stirling Management School, University of Stirling, IZA, CESifo, and NBER) published in Oxford Review of Economic Policy Volume 27 Number 2 (Summer 2011)

Abstract

This article reviews the effects of the Great Recession on youth labour markets. We argue that young people aged 16-24 have suffered disproportionately during the recession. Using the USA and UK as case studies, we analyse youth unemployment using micro-data. We find that there is convincing evidence that the effects of unemployment when young impose costs on individuals and society well into the future. Although the effects of current policies on youth unemployment are uncertain, there is still a strong case for policy intervention to address the difficulties that the young are having in accessing employment.

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