Cover IMF Working Papers
Mitigating Long-term Unemployment in Europe
Author:
Mrs. Nujin Suphaphiphat
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and
Hiroaki Miyamotonull

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Series:
IMF Working Papers
Volume/Issue:
Volume 2020: Issue 168
Language:
English
Publication Date:
21 Aug 2020
DOI:
https://doi.org/10.5089/9781513554464.001
ISBN:
9781513554464
ISSN:
1018-5941
Pages:
32
Keywords:
WP; incidence of LTU; LTU; incidence; LTU rate; active labor market policies; employment incentive; EU labor markets; start-up incentive; Labor markets; Labor market policy; Unemployment; Employment; Active labor market policies; Europe; Long-term unemployment; labor market matching efficiency; active labor market policy
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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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.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund
Volume 2020: Issue 168