Removing demand-side barriers to youth employment in Lithuania

This chapter analyses demand-side barriers to youth hiring in Lithuania, such as the cost of hiring (as determined by non-wage costs and minimum wages), and employment protection legislation. It also discusses policies currently in place to tackle such barriers (including hiring incentives) and offers a range of policy options to create more favourable conditions for employers to hire youth. The key challenges identified in this chapter include: high non-wages costs, particularly on low-wages earners a flat minimum wage, which does not reflect the productivity of young workers and overly strict employment protection legislation on both permanent and temporary contracts.