Youth Unemployment and Energy Consumption in OECD Countries

Authors : Elma SATROVİC

Pages : 20-35

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Publication Date : 2020-06-23

Article Type : Research Paper

Abstract :Youth unemployment is considered a socio-economic problem with serious consequences. It can increase criminal activity among youth. Apart from this, current youth unemployment may cause a serious loss of the income in the future. Therefore, a potential link between energy consumption and youth unemployment is explored in this research. Annual panel data have been collected for 34 OECD countries between 1991 and 2015. This paper employed a panel VAR approach. The empirical findings indicate that youth unemployment responds negatively to energy consumption. These results were confirmed using the Granger causality test, which revealed a unidirectional causal link running from energy consumption to youth unemployment. This is why necessary efforts need to be made to increase youth employment. A negative impact reported in this research gives important insights for key policy makers. The concluding remarks of this paper discuss policy recommendations in detail and offer insight for future research.
Keywords : Causal link, Energy consumption, OECD countries, Panel VAR, Youth unemployment