Abstract
This chapter examines the youth guarantee programme introduced in Finland 2005. The reform consisted of early intervention, monitoring and individualized job search plans that guarantee activation measures for unemployed young persons. Using the age threshold set at 25 years, we find that the youth guarantee moderately increased unsubsidized employment while having a negligible impact on unemployment in the age range of 23–24. We also show that the positive impacts of the youth guarantee only materialize among unemployed young persons with a vocational education. There are no signs that the guarantee improved the labour market prospects of young uneducated people.
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Notes
- 1.
Psychotropic drugs refer to five Anatomical Therapeutic Chemical (ATC) classification subgroups: antidepressants (N06A, N06C), antipsychotics (N05A), anxiolytics (N05B), hypnotics and sedatives (N05C) and psychostimulants for ADHD (N06B).
- 2.
We estimated the same DiD regressions with the sample of young people who experienced unemployment during a year. The results are close to those reported and all of the conclusions remain the same.
- 3.
We also estimated the DiD regressions without covariates. These (unreported) results show that the estimates reported in Fig. 15.2 are not sensitive to controlling for background characteristics.
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Hämäläinen, K., Hämäläinen, U., Tuomala, J. (2018). The Evaluation of a Finnish Youth Guarantee: Lessons for Europe?. In: Malo, M., Moreno Mínguez, A. (eds) European Youth Labour Markets. Springer, Cham. https://doi.org/10.1007/978-3-319-68222-8_15
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DOI: https://doi.org/10.1007/978-3-319-68222-8_15
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