They can play an important role in keeping young people connected to the labour market or in education, thereby preventing the scarring effects arising from long-term unemployment, including those related to negative wage effects. The success of youth guarantees crucially depends upon the strength of underlying institutions (like the public employment service and the apprenticeship system) and coordination mechanisms between the various stakeholders. In countries where such institutions and mechanisms are not yet well-developed, the success of youth guarantees is likely to be limited.