Youth Employment Programs - Independent Evaluation Group

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Box 2.1Adapting the MILES Framework to Organize Issues in YouthEmploymentThe evaluation adapts the World Bank’s MILES framework to look at youth employment. TheBank uses MILES in designing labor market strategies by identifying key constraints for jobcreation within five components (Holzmann 2007):• Macroeconomics: Economic growth and net job creation.• Investment climate: Incentives for employers to invest and create jobs.• Labor market: Regulations affecting job search, hiring process and cost.• Education: Individual education, socioeconomics, and demographics.• Social Protection: Security against loss of earnings, unemployment insurance.The determinants of youth employment are embedded in MILES and help to define the natureof the youth employment problem in a country (see figure, below).(M) Macroeconomic, Political, Governance, Social (S)Supply ofSkills andAttributes (E)Labor MarketCharacteristicsof Youth (L)Demand forYouth by Firms(I)Self-Employment(I)• Individualattributes• Educationrelevant forwork• Size of youthcohort• Asymmetricinformationabout jobsand skills• Below marketearnings• Economicgrowth• Investmentclimate• Firms’ preference• Jobs inrural/urban andsectors• Economicgrowthproceduresfor start-ups• Access toresourcesGovernment InterventionsSource: Authors, adapted from Holzmann (2007).• Education System and Policies• Labor Market Policies• Active Labor Market Programs• Investment Climate Policies14 Youth Employment Programs
Interventions to Address Youth EmploymentBroad policy interventions, such as supporting macroeconomic growth, trade,and foreign investment are necessary to promote overall employment, aswell as a stable political and macroeconomic environment, access to energyand infrastructure, and a conducive business and labor market environmentare all basic requirements for investment and job creation, and affect all agegroups. However, in some cases, this may not be sufficient to tackle youthemployment. Government interventions with a “youth lens” may be needed.Governments design youth employment interventions to address imperfectinformation, externalities, and market regulations that may negativelyaffect development outcomes. For instance, education interventions addressinformation failure in education management, which negatively affectsquality and the registration and accreditation of providers (Robalino andothers 2010). With more education, girls from lower-income groups delay theirmarriage age, which helps decrease fertility rates. Labor and credit marketconstraints limit access to jobs, credit, and markets for lower-income groups(Begg and others 2000).The country context is an important driver for policy directions. Asemphasized in chapter 1, differences in country context (table 1.2) implydifferences in policy effectiveness. Governments use three main strategicdirections—policies to increase the demand for young workers, labor marketreforms, and education reforms—to address youth employment. AppendixA, table A.1 categorizes youth employment problems and the relateddeterminants by country context. It suggests the main strategic directions toaddress these issues. In each youth employment context, policies to improvethe business environment and foster trade, entrepreneurship, and growthare crucial to increase net job creation and labor demand. They may needto be accompanied by education policies to address a skill mismatch, andincrease the human capital level and employability of youth, especially incountries with growing youth cohorts and structural changes in the economy.Reforms in labor regulation may be needed in middle-income countries toincrease flexibility in contracting and pay, and to reduce segmentation anddiscrimination.Youth-specific strategic directions and their interventions (table 4.1) alignwith the “I, L, and E” of the Bank’s MILES framework (box 2.1). MILESclassifies labor market regulations under (L); however, because they influencethe demand by firms for workers, for the purpose of this evaluation,regulations are classified under (I). Macroeconomic growth policies (M)are closely tied to business cycles and affect all age groups. Similarly,investments in infrastructure and energy are necessary for firms to createjobs for all age groups, and not just for youth. Unemployed youth in higherincomecountries can get access to unemployment benefits (S), but in mostBank client countries this is not an option. Public works programs can playa temporary safety net role for low-income groups. Social safety nets andWhat Are the World Bank and IFC Doing in Youth Employment? 15
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 14 and 15: Youth Employment ChallengesIn gener
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
Page 40 and 41: and can afford to wait for a better
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: The strength and openness of the ec
Page 53 and 54: commitments by the International Ba
Page 55: Figure 2.2Top 12 Youth Employment I
Page 58 and 59: • the substitution effect of bett
Page 61 and 62: Chapter 3What Is the Evidence that
Page 63 and 64: school dropouts early. Learning opp
Page 65 and 66: evaluations on what works best to p
Page 67 and 68: Agriculture, Health, Education, Soc
Page 69: Holzmann, Robert. 2007. MILES: Iden
Page 72 and 73: • Chapter Highlights• The Bank
Page 76 and 77: Argentina, Bulgaria, Colombia, and
Page 78 and 79: facilitated 69 foreign work contrac
Page 80 and 81: awarded vouchers to about 1,000 out
Page 82 and 83: • Comparing the interventions ana
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Page 87 and 88: Chapter 5Recommendations
Page 89: farm self-employment and employment
Page 92 and 93: This appendix presents the factors
Page 94 and 95: Organization for Standardization (I
Page 96 and 97: Box A.3Youth as a Demographic Divid
Page 98 and 99: 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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Youth Employment Programs - Independent Evaluation Group

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