| Abstract: | Unemployment rates for urban youth have grown considerably over the past decade and are currently at Great Depression levels. This paper examines the relative importance of four hypotheses regarding the causes of this development. These are that youth have been: (1) pushed out by recession conditions and declining growth rates; (2) crowded out by growth in their own numbers and expansions in female labor force participation; (3) priced out by minimum wages; or (4) dropped out by poverty, discrimination and other structural forces which have weakened the labor market attachment of young people. It is argued that most of the problem can be attributed to the pushed out and dropped out forces. Hence, policies to expand employment opportunities, as well as to reduce poverty and discrimination are most important. The author further argues that a redefinition of the problem and a reorientation of policy are both necessary. |
