CEU Electronic Theses and Dissertations, 2016
| Author | Prachkovski, Ilija |
|---|---|
| Title | How Does Quality of Government Affect Youth Unemployment? - Comparing the Former Communist Countries to the European Union Member States |
| Summary | In this thesis, I empirically investigate, analyse and explain the different Quality of Government the former communist countries in Europe and Asia have developed, compare them to the developed Western European countries and explore how these differences in Quality of Government affect some of their economic performances, namely youth unemployment. I based my analysis on a panel data for 45 countries in the period between 1996 and 2014. To explain variation in youth unemployment I employ the Quality of Government Index that incorporates the quantitative indicators of the Worldwide Governance Indicators for (i) control of corruption, (ii) rule of law, (iii) government effectiveness, and (iv) government voice and accountability. The research conducted in this paper uses three regression equations: i) regression with one regressor, ii) regression with a dummy variable, and iii) regression with an interaction term. To show that my results are robust, I control for important potentially omitted variables such as GDP per capita and government size, and I use controls for time and entry fixed effects. I find that the former communist countries have developed worse Quality of Government than the European Union Member states that were never ruled by a communist regime. However, the Quality of Government of the former communist countries is improving steadily through the period of interest, while for the European Union Member states the Quality of Government is either stagnating or worsening. Based on within-sample predictions, my results imply that the former communist countries should expect slight increase in their youth unemployment as they improve their Quality of Government, in comparison to the European Union countries, which were not communist, should expect strong decrease in their youth unemployment. However, the former communist countries that are today part of the European Union are closer in their performance to their EU counterparts than to the other former communist countries, and their youth unemployment would further converge if they continue improving their Quality of Government. |
| Supervisor | Dorsch Michael |
| Department | School of Public Policy MPA |
| Full text | https://www.etd.ceu.edu/2016/prachkovski_ilija.pdf |
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