Abstract:

Youth unemployment has been a major economic problem that has increased in recent years. In many countries, the increasing youth unemployment rates can be said to cause significant economic and social problems. Therefore, it is very important to investigate the causes of the problem of youth unemployment. The study aims to investigate the macroeconomic factors affecting youth unemployment in 55 developed and developing countries. The analysis method of the study is panel regression. The analysis covers the period 2002-2019. The variation of employment is the youth unemployment rate. In the econometric model, independent variables are economic growth, external transparency, investments, population, inflation, foreign direct investments and public spending. The results of the analysis show that economic growth, inflation and increase in public spending have reduced youth unemployment. On the other hand, the outward transparency increases the youth unemployment. In addition, investments, population and foreign direct investments have no statistically significant impact on youth unemployment rates.

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