Vol. 46, No. 1-2 (Spring-Summer 2021)
Does Globalization Increase Civil Unrest Among Unemployed Youth?
Jindal School of Government and Public Policy, Jindal Global University, Sonipat, India
literature suggests that the presence of large youth cohorts
make countries more vulnerable to the risk of civil unrest of
all forms. There is contradictory evidences as well. This paper
examines the role of youth unemployment on civil unrest in a
globalized world. Using a Nobel dataset on globalization which
categorizes globalization into its major pillars, and more
recent information on youth unemployment & urban social
unrest, we find new evidence which contradicts conventional
wisdom. Our results indicate that youth unemployment does not
lead to any onset of unrest per se. However, in the presence
of trade and finance globalization, it does play a positive
and significant role by increasing the likelihood of unrest.
Our findings imply that a one standard deviation increase in
youth unemployment around its mean value in the presence of
trade globalization increases the likelihood of disruptive
events by 1.08 units. Similarly, for finance globalization
the chances of events rise by 0.921 units. In addition, for
82 countries in our dataset, large scale finance and trade
globalization also contribute to a surge in likelihood.
Results remain robust after inclusion of relevant macroeconomic
variables and regional dummies. The current findings suggest
that caution should be employed in ascribing alleged benefits of
globalization to youths.