1. TEAM NAME: MINA
CROATIA
UNIVERSITY OF ZAGREB: FACULTY OF
ECONOMICS AND BUSINESS

2. INFLEXIBILITY
CORUPTION
OF
AND
WORKFORCE
EDUCATION ECONOMIC NEPOTISM INACCESSIBILIT
PROBLEM CRISIS
POLICY OF
OF THE
EMPLOYERS INFORMATION
YOUTH UNEMPLOYMENT
• DECREASE OF THE
BIGGER BIRTHRATE
SOCIAL • UNSUSTAINABILITY
SPENDINGS IMPACT ON THE OF THE PENSION
DEMOGRAPHY SYSTEM
OPPORTUNITY • DECREASING OF THE
COSTS PSYCHOSOCIAL COMPETITIVENESS
CONSEQUENCES

3. THE CAUSES
• the incompatibility of the education system with the needs of the labor market
EDUCATION • the education system which does not encourage creativity in young people
• the weak incentives for exports and innovation
ECONOMIC POLICY • the growth in consumption was based on borrowing for years
INFLEXIBILITY OF YOUTH • geographic mobility of youth is low
WORKFORCE • the willingness to accept any job is low
THE PROBLEM OF THE • they don’t recognize youth potential,youth inovation and capability of fast learning
EMPLOYERS • they set high barriers for young people entering the labor market
CORUPTION AND • it leads to inefficiency and lower employment rate
NEPOTISM • young people are discouraged because they feel that the job gets through the links
• Okun’s law
CRISIS • too many unemployed leads to fewer chances of youth employment
INACCESSIBILTY OF • Information about the incentives for employment, selfemployment, retraining
opportunities, labor market needs, etc. the Bureaucracy problems
INFORMATION

4. THE CONSEQUENCES
BIGGER SOCIAL OPPORTUNITY IMPACT ON THE PSYCHOSOCIAL
SPENDINGS COSTS DEMOGRAPHY CONSEQUENCES
• unemployment • Opportunity • the growing • Anxiety,
benefits cost of lost poverty depression,
production, • The higher the tension, and
income etc unemployment even revolt, can
rate for women lead to crime,
due to crisis violence,
resorting to
alcohol, drugs,
etc.
IN CASE OF NOT REACTING, IN LONG RUN CONSEQUENCES ARE:
UNSUSTAINABILITY DECREASING OF
DECREASE OF THE
OF THE PENSION THE
BIRTHRATE
SYSTEM COMPETITIVENESS

5. THE SOLUTIONS
EDUCATION
• Introducing obligatory practice at university
• Online classes
o Decrease obligatory courses and introducing elective online
courses in order to encourage children to specialize what
they are good at
o Groups are formed based on difficulty level, and they are
easy to form, since there is possibility to connect different
part of country online
o Networking of this project leads to lower costs of
education but also possibility for easier access to education

6. THE SOLUTIONS
EDUCATION
• RETRAINING AND ADDITIONAL TRAINING OF
YOUTH
o Taking in consideration that that changes in education system
affects labor market in medium and long run, in short run
there should be quality programs of retraining and additional
training
• BETTER COORDINATION BETWEEN EDUCATION
SYSTEM AND LABOR MARKET
o Our example: Increase tuition fee for professions in surplus, and that money
transfer as sholarships for proffesions in deficit

7. THE SOLUTIONS
YOUTH SUBVENTIONS
• ENTERPRENEURSHIP
o To encrease subventions for young entrepreneurs
o Provide them proffesional help in establishing the first company
o Entrepreneurial incubators
• INFORMATION
o Lectures and workshops for young people to introduce them
to advantages of government incentives
o Gathering all solved examples of documentation (forms,
projects) for incentives in one place on the Internet

8. THE SOLUTIONS
EMPLOYERS SUBVENTIONS
• CREATIVE CENTRES
o The Government gives grants to companies based on the project to open the
creative centers within the company
o The goal of crative centers is to make inovations within the company
o Conditions to recieve the funds would be: in creative centers have to be at
least 75% employed people under 27 years, funds can be used onla for the
operations of the center, young working on these projects would be payed
but on the other hand-employers would be exempt from state levies, etc.
o The result would be to increase employment of young people, to encourage
their creativity and use their full potential, to encourage innovation by the
private sector through joint investment by the private sector and the state,
to increase the competitiveness of enterprises and exports etc

9. THE SOLUTIONS
INVESTMENTS
• PROJECT BONDS
o The Goals: to encourage optimism in all markets, to encourage consumption
and investments
o How? some projects, such as housing for young people, would be declared of
strategic national interest and are financed by issuing bonds that the central
bank will buy
o These bonds would be at a very low interest rate or indexed because the goal
would not be earning a central bank but boost employment
o This is possible because central banks are solvent, and they have big reserves
that are not being used and by financing this kind of projects (e.g.financing
building 1000 besides bigger cities) would not influence inflation, but it
would encourage the construction sector and therefore that would increase
unemploymentpositive economic trends in countryincresing youth
employment rate

10. PLANNED RESULTES AND OUTCOMES
• Some of our solutions are implemented in short run and
others in long run
• An unlimited number of young people will be reached
• To work oun our project solutions, we need only 6 young
people in team + external collaborators like state
institutions, governments etc