The Relationship between Youth Unemployment and Economic Growth in Central and Eastern European Countries: An Empirical Analysis/Orta ve Dogu Avrupa Ülkelerinde Genç Issizligi ve Ekonomik Büyüme Arasindaki Iliski: Ampirik Analiz

Abstract

The study has analyzed the relationship between youth unemployment and economic growth, in the context of Okun law, by using new generation panel data analysis and cointegration tests. In this study, 18 Central and Eastern European country have been selected as subject matter whose youth unemployment rate is above the EU-28 average (25 %) for the period 2006-2012. The results show that, if youth unemployment is quite severe; even an exclusive economic growth will not be enough to reduce the youth unemployment rate in the country. It is recommended that the global and country-specific policies which are effective, result-driven on youth (Un) employment and labour market issues, should be developed. This study is expected to make a significant contribution to the literature on unemployment and social conflict.