- Volume 64 Issue 4
Recently, the youth employment crisis which is characterized by high unemployment and low employment rate has been considerably serious, while jobless growth has been observed. However, job shortage and unstable labor status of the old are also main issues. To solve this problem, the job creation and deferred retirement for the old has been proceeded. Consequently, it has caused to the intergenerational war on job due to equity of job creation for the youth. However, it is not desirable that the problem would be diagnosed and the policy would be set up although little attention has so far been paid to test empirically this kind of substitution relation. Thus, this research has been analyzed whether the employment relation between the youth and the old is substitution or not. The analysis method is panel data analysis in 15 OECD countries including Korea(1990~2000). Major findings are as follows. First, only half of the youth and the old works. It provides the evidence that the employment crisis is not a problem of special generation but all of them. Second, employment relation between generations followed by panel analysis is not substitution relation. This findings can be interpreted as evidence that it is unlikely to solve the youth employment matter even though the government encourages the early retirement.