The Nexus Among Financial Development and Youth Unemployment: An Empirical Approach

The employment of individuals is a very important issue for both the individual and society. It is therefore essential that those who are actively engaged in the workforce are guaranteed the opportunity to participate in the labor market, thereby preventing the formation of social classes and divisions. Young people, who are the guarantee of the future of a country, are among the most vulnerable groups in terms of labor employment. This situation increases the importance of youth unemployment. In a context of accelerated globalization, financial developments that enhance output, production, and consumption play a pivotal role in the economic and social advancement of nations. Therefore, the aim of this study is to reveal the nexus between financial development and youth unemployment in the Türkiye's sample. Due to data limitations, the study covers the period from 1988 to 2021. The findings of the study, which employed the ARDL method, indicate that financial development has a significant negative impact on youth unemployment during the specified period.