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Description:
Youth unemployment is an issue of primary concern in WesternEuropean countries. In this paper we analyze dynamics in unemployment foryouths, adults (prime-aged individuals), and elderly. We use quarterly Frenchunemployment data, stratified by gender, age group, and duration, over theperiod 1982--1994. We find that the inflow rate of male youths is moresensitive to the business cycle than the inflow rate of adults, but that theoutflow of adults is more sensitive than the outflow of youths. Seasonaleffects affect youth unemployment mainly by fluctuations in the inflow. Theresults are used for a policy recommendation.