Coping Strategies for Youth Unemployment Caused by the Financial Tsunami-An Analysis of the Effectiveness of “Internship Program for University/college Implemented in TaiwanGraduates in the Corporate Workplace”

DOI: 10.5716/2251-1814_EeL39

Authors: Chiu Hsiang Kao, Chin-Ming Hong

Abstract:

In this study, the document analysis method was adopted for the purpose of exploring the high unemployment rates observed in highly educated youth due to the financial tsunami in 2008 and analyzing the effectiveness of the “Internship Program for University/college Graduates in the Corporate Workplace.” First, the youth unemployment situation and its effects, the implication of the flexible labor market policy of “wage subsidies”, and the youth employment promotion experiences of Europe and the United States were explored. Secondly, the effectiveness of Taiwan’s implementation of the wage subsidies policy-“Internship Program for University/college Graduates in the Corporate Workplace” was explored. In this study, it is suggested that the government should: (1) establish a rigorous screening mechanism for the participating youth; (2) engage in planning that subsidized enterprises or institutions must not unlawfully dismiss the existing workers in order to avoid the crowding out effect; (3) the government should have a compressive package plan before implementing the program: a) targeting different applicable subjects and functions, establish a classification framework for the unemployed in order to put resources to effective uses; b) it is suggested that the program planning process and implementation effectiveness be published to encourage private participation, which in turn will enhance the degree of social and public support; c) to engage in effectiveness assessment and review to serve as a reference for related policy implementations in the future; d) plan comprehensive employment policies and measures to promote youth employment; e) to strengthen students’ professional functions and improve internship or practice related opportunities; f) adjust employment promotion mechanisms in line with the national conditions and in reference to the successful international experiences.

Keywords: financial tsunami, wage subsidies, workplace internship