Youth Employment Programs - Independent Evaluation Group

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Youth Employment ChallengesIn general, a growing economy and a stable macroeconomic and politicalenvironment, access to energy and infrastructure, and a conducive businessand labor market environment are basic requirements for investment and jobcreation for all age groups. However, in some cases, this may not be sufficientto tackle issues related to youth employment.Even where growth is positive, the labor market position of youth differsfrom adults. Youth are more likely to be among the working poor than adults.They are at higher risk of unemployment, underemployment, or working injobs with low earnings. The early work situation of young people has welfareconsequences for their future. This report is the first Independent EvaluationGroup (IEG) evaluation of the World Bank Group’s support to clients seeking toaddress youth employment issues.In 2011, the International Labour Organization (ILO) estimated that 12.6percent of youth in the global labor force are unemployed—about 74.6 millionyouth. Youth unemployment rates are everywhere considerably higher thanadult rates. In several middle-income countries, half of the youth workforce isunemployed. Some youth face persistent barriers to employment, among themwomen, ethnic groups, the less educated, and youth with disabilities.Low-income youth cannot afford to be economically idle. They work informallyunder poor conditions and as unpaid laborers, and they constitute adisproportionately large share of the working poor. Slow agricultural productivitygrowth and access to land and credit are the main constraints foryoung workers in rural areas.Addressing youth employment issues is a major concern for many countries. Itnegatively affects the welfare of young people and potentially the rest of theeconomy as well. Unemployed youth do not get a chance to build professionalskills. As a result, they are more at risk for higher adult unemployment, careerdowngrades and lower wages later in life, and a loss in lifetime earnings.The reasons for higher youth-to-adult unemployment rates include labordemand and supply factors, as well as constraints in the labor and creditmarkets. Their relative importance in a dynamic growth context varies acrosscountries. Recognizing these differences is important for governments indesigning youth employment programs tailored to the most affected youthgroups, and to incorporating in program design specific interventions to addressthe underlying causes of youth unemployment and underemployment.This evaluation was done to better understand the contributions of the WorldBank and IFC to these efforts, their effectiveness, and what can be learnedfrom the experience to support decision makers in finding new solutions. Theevaluation addresses three questions:• What is the nature of the World Bank Group’s support to countries tacklingyouth employment and how should this be evaluated?xiiYouth Employment Programs
• What is the evidence that the Bank Group supports priority countryneeds?• What is the evidence regarding the effectiveness of that support?What Are the Bank and IFC Doing in Youth Employment?The World Bank and IFC provide support for youth employment programsthrough lending, investment, and analytical work. Evaluating the WorldBank’s and IFC’s assistance to youth employment is challenging becauseemployment outcomes are the result of a1ctions across many sectors. Interventionsthat affect youth employment are often not “tagged” as youthinterventions.Youth employment outcomes are determined by the demand and supply of laborand the functioning of markets and government institutions. The Bank’sMILES (Macroeconomics, Investment climate, Labor market, Education, andSocial protection) framework is used to examine youth employment, focusingprimarily on the “I, L, and E,” that is an Investment climate to foster jobcreation and work opportunities, Labor market institutions and the schoolto-worktransition, and Education and skills aspects. Macroeconomic growthpolicies (M) are crucially related to business cycles and affect all age groups,not just the young. Unemployed youth in higher-income countries can get accessto Social protection (S), such as unemployment benefits, but in countrieswhere the Bank Group operates, they usually do not have this option.This evaluation covers fiscal years 2001–2011 and draws from a number ofsources, including a systematic review of relevant interventions, key informantinterviews, a review of 90 closed and ongoing Bank projects, a review of21 pieces of Bank nonlending sector work, and 18 country studies, 5 of whichinvolved country visits. All IFC advisory services and investment operationswith components focused on job creation and skills development were includedin the analysis. IFC has not categorized employment data by age.The identified Bank lending portfolio for youth employment is small. BetweenFY01 and FY11, the World Bank lent $2.85 billion to support youthemployment programs through 90 operations in 57 countries. New lendingpeaked in 2007, coinciding with the lowest youth unemployment rateduring the decade and the publication of World Development Report 2007:Development and the Next Generation. Bank lending peaked again in 2009and 2010 during the global economic crisis. Most Bank lending for youthemployment is managed by the Human Development Network (73 percent).Africa had more than one-third of the projects, but the Europe and CentralAsia Region received the most lending, with 31 percent of total lending foryouth employment.The top 10 borrowers for youth employment are countries with ongoing reformprograms. They received 70 percent of youth employment lending. Theremaining 30 percent of lending was split among 47 countries. Fragile statesOverview xiii
Page 5 and 6: Youth EmploymentProgramsAn Evaluati
Page 8 and 9: The Bank’s Impact Evaluations on
Page 10 and 11: LACLICLILMBAMENANEETNGOOECDPADPCRPD
Page 12 and 13: IEG management and colleagues provi
Page 16 and 17: implemented 12 of the 90 operations
Page 18 and 19: Kenya, entrepreneurship training fo
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Page 22 and 23: support to youth employment program
Page 24 and 25: tive rules on hiring and firing as
Page 26 and 27: Management Action RecordIEG Finding
Page 28 and 29: IEG Findings and ConclusionsIEG Rec
Page 30 and 31: IEG Findings and ConclusionsIEG Rec
Page 33 and 34: Report to the Board from the Commit
Page 35: could have focused more on the lack
Page 38 and 39: • Chapter Highlights• High yout
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Page 42 and 43: ConsequencesEarly unemployment is s
Page 44 and 45: ReferencesBegg, David, Stanley Fisc
Page 47 and 48: Chapter 2What Are the World Bank an
Page 49 and 50: The strength and openness of the ec
Page 51 and 52: Interventions to Address Youth Empl
Page 53 and 54: commitments by the International Ba
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Page 61 and 62: Chapter 3What Is the Evidence that
Page 63 and 64: school dropouts early. Learning opp
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evaluations on what works best to p
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Agriculture, Health, Education, Soc
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Holzmann, Robert. 2007. MILES: Iden
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• Chapter Highlights• The Bank
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Argentina, Bulgaria, Colombia, and
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facilitated 69 foreign work contrac
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awarded vouchers to about 1,000 out
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• Comparing the interventions ana
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Hjort, Jonas, Michael Kremer, Isaac
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Chapter 5Recommendations
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farm self-employment and employment
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This appendix presents the factors
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Organization for Standardization (I
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Box A.3Youth as a Demographic Divid
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Table A.1Types of Youth Employment
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Notes1. This phenomenon could be le
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Appendix BEvaluation Data Sources a
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Identification and Analysis of the
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• Making the labor market work be
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Table B.3ApprovalFYList of Projects
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Table B.3ApprovalFYList of Projects
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Table B.4(I)nvestmentClimate(L)abor
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Table B.6List of Economic Sector Wo
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ment, Private Sector Development, a
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Other evaluations with outcome meas
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Table B.8CountryFranceKenyaMexicoPa
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Table B.8CountryUnitedStatesYouth E
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Table B.8CountryEuropeancountriesLa
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Bidani, Benu, Niels-Hugo Blunch, Ch
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Training Replication Sites.” Manp
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Appendix C provides additional info
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Box C.2Global Partnership for Youth
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ReferencesAedo, Cristian, and Ian W
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This appendix provides additional i
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The number of projects and total le
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Figure D.2World Bank Youth Employme
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Table D.5Intervention categoryYouth
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Table D.7Prevalence of Project Obje
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Table D.9Target Groups of Project O
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Table D.11Type of Interventions Sup
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Table D.13 Frequently Used Youth Em
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In sum, this portfolio review chapt
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approach in Turkey and Sierra Leone
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This appendix presents a detailed a
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to Finance business line, over a si
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entrepreneurship projects. Investme
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IFC has three types of investments
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Box E.1Africa Schools ProgramIFC su
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Box E.2e4e Initiative for Arab Yout
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3. IFC’s Advisory Services corpor
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This appendix presents lessons for
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Labor Market RegulationsLabor marke
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to the definition of unemployment b
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In post-conflict zones with small f
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Public works programs in Bank proje
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marginal impact of school-to-work t
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of the program. However, results fo
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• Weak results frameworks on the
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sustainability. Zambia’s TEVET pr
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unemployed youth registered with th
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for Employment and Entrepreneurship
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Note1. The Technical and Vocational
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Ibarraran, Pablo, and David Rosas.
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World Bank. 2012a. “World Bank an
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IEG’s Youth Employment Evaluation
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Figure G.1 Facebook Demographics Ba
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Figure G.3Results on Rural Employme
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BibliographyBarrera, Felipe, Paul G
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———. 2011b. Migration and Rem
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The World Bank GroupWorking for a W
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