This study provides policy suggestions for resolving youth employment challenges by reconfiguring the institutional arrangements for labor markets, including employment protection legislation, unemployment insurance, and active labor market policies. We draw upon previous literature on the effects of institutions and policies on youth employment and provide directions for labor market reform, agreeing on the issues by performing an analytical-hierarchical process with stakeholders, such as academic experts, policy practitioners, and the youth.
The results show that there is no agreement on the direction for the reform of either employment protection legislation or unemployment insurance. However, the stakeholders agreed that narrowing the gaps in employment protection legislation for regular- and fixed-term employees would help resolve youth employment problems.
Further investment in active labor market policy draws unanimous support with high priorities among policy measures, requiring the fine-tuning of policy instruments. Specific recommendations can meet the demands of both stakeholders and policy beneficiaries.