This study quantified the contribution of labor market transition rates to the rise in youth unemployment in 2012-2017. Under the assumption that there was no entry into or exit from the labor force, the 2.95%p and -0.31%p increase in the youth unemployment rate in 2012-2017 (2.30%p) can be explained by the decreasing job-finding rate and increasing job-separation rate. Indeed, the downtrend in the job-separation rate during the period spurred the decrease in the unemployment rate. This means that if the job-separation rate had not fallen, the youth unemployment rate would have risen by another 0.31%p. The results of the analysis show that, assuming that there is no movement in the labor force, a falling job-finding rate serves to exacerbate youth unemployment. When the same analysis was divided into men and women, it was found that the unemployment rate rose significantly on a drop in the job-finding rate for both groups. However, the decrease in the job-separation rate for men was minimal, and as such, the increase in the youth unemployment rate was greater.

If the movements in the labor force are considered, the increase in the youth unemployment rate can be mainly attributed to the declines in the transition rate from unemployed to employed and that from ‘not in the labor force’ (NILF) to employed; the impact of the former is double that of the latter. Moreover, while the fall in both transition rates was the main driver of youth unemployment for men and women, the decrease in the transition rate from employed to NILF was greater for women than for men, which partly offset the rise in the unemployment rate on the decrease in the transition rate to employed.

Preface
Executive Summary

Chapter 1 Introduction

Chapter 2 Review of Previous Studies
　Section 1 International Literature Review
　Section 2 Domestic Literature Review
　Section 3 Differences Between This Study and Previous Domestic Research

Chapter 3 Contribution Analysis of Two Labor Market Transition Paths
　Section 1 Analysis Methods and Data
　Section 2 Analysis Results

Chapter 4 Contribution Analysis of Six Labor Market Transition Paths
　Section 1 Analysis Methods and Data
　Section 2 Analysis Results

Chapter 5 Summary and Policy Implications

References
ABSTRACT