Youth Employment Programs - Independent Evaluation Group

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• Chapter Highlights• The Bank’s rigorous evaluations of youth employment interventions examine shorttermeffects, find limited positive results, and do not calculate the costs and costeffectivenessof interventions. The few studies of the employment effect of Bank-supportedshort-term skills building for unemployed youth suggest questionable results.• IFC identified youth employment as an issue in the Middle East and North Africastarting in the mid-2000s. The recent regional strategy pays particular attention toyouth. A few IFC projects sought to provide opportunities to youth, but evidence ontheir contribution to youth employment is lacking.• The results framework used by projects is weak and constrains the analysis of labormarket outcomes for these projects.This chapter presents findings from the IEG systematic review of impactevaluations and from World Bank Group projects. Evidence is presented bysingle interventions. This follows the interventions listed in table 4.1, whichwere introduced in chapter 2.Evidence on the results from the Bank and IFC project portfolio on youthemployment has been difficult to obtain, mainly because the data arelacking or because almost two-thirds of the selected projects are ongoing.More detailed information is in appendix F. Appendix D, table D.12 providesan overview of the type of interventions supported by Bank projects in thedifferent regions.Table 4.1Youth Employment Intervention CategoriesDemand-side: Fostering jobcreation/work opportunities (I)• Improving the business andinvestment climate• Regulations to encourage the hiringof young people• Fostering self-employment andentrepreneurship• Training in entrepreneurship orbusiness management• Support to start businesses andfarms• Providing wage subsidies• Direct job creation (public worksprograms)Source: IEG.Smoothing school-to-work transitionand job mobility (L)• Counseling, job search skills, informationon vacancies, placement• Improving information on the labormarket• Program for overseas employmentof young peopleSupply-side: Fostering skill developmentand labor market relevance of skills (E)• Improving the quality of formal technicaland vocational education andtraining (TVET)• Expanding/improving work-basedlearning in vocational and apprenticeshipschemes• Certification of skills• Remedial education/second chance/non-formal technical and vocationaltraining programs• Providing information on training• Training subsidies and vouchers• Support for transportation and changeof residence36 Youth Employment Programs
Fostering Job Creation and Work Opportunities (I)Firms’ demand for youth and self-employment is unevenly covered in theBank’s analytical reports, which focus more on the skills gap constraintfor employers. The Bank’s Investment Climate Assessment reports examinewhether entrepreneurs see the lack of skills as a constraint to investment.They identify the sectors that are likely to grow, the kinds of skills needed,and whether young employees are learning these skills (for example, inMongolia). Where there is little prospect for increasing formal sector jobs as,for example, in sub-Saharan Africa, some Bank reports argue for more focuson raising the productivity and incomes of youth working in the informalsector or in agriculture.Improving the business and investment climate has been linked toinvestment and employment growth (Bruhn 2008), but the impact on youthemployment is unknown. Four Bank operations supported trade reforms inyouth-intensive industries. However, the effect on employment and earningsis unknown. In Liberia, Mali, and Sierra Leone, the Bank facilitated theexport of fish and local artisanal products. Reforms in export competitivenessin Turkey contributed to a one percentage point increase in private spendingon research and development. In Armenia, an enterprise incubator helped 18local information technology companies attract foreign investors, resultingin a 15 percent annual increase in graduates employed in informationtechnology. In Bhutan, which has the highest youth-to-adult unemploymentratio (8.7) in the world, the Bank helped shortening the administrativetime to recruit foreign workers, thereby increasing the labor supply. Thesubstitution effect on Bhutanese youth is unknown.Data on job creation for most IFC investment climate advisory projects have notbeen tracked. IFC-supported investment climate reforms in four African countries(Burkina Faso, Liberia, Rwanda, and Sierra Leone) created roughly 60,000 jobsfor all age groups through newly established businesses across different sectors.However, no information is available on the distributional aspects.Regulations to encourage hiring of youth allow greater flexibility andreduce segmentation in middle-income countries, but the impact on youthemployment is not clear. Labor market regulations mainly protect formalsector “insider” workers, and can make it more difficult for youth to enter themarket. For example, in Latin America, the unemployment effect of stricterregulations is almost two times larger for youth than for adult workers(Heckman and others 2000). Based on data from 17 OECD countries, Neumarkand Wascher (2004) found that the negative employment effect of minimumwages on youth can be reduced by a youth sub-minimum wage. Higher youthminimum wages in Portugal led to a flatter wage profile over time as firmswould compensate a higher initial wage with a slower wage progression(Cardoso 2009). The Bank did not collect any information on the youthemployment effect from Bank-supported regulatory reforms in Eastern Europeand Central Asia.What is the Evidence on the Effectiveness of Support to Youth Employment? 37
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Youth EmploymentProgramsAn Evaluati
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The Bank’s Impact Evaluations on
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LACLICLILMBAMENANEETNGOOECDPADPCRPD
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IEG management and colleagues provi
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Youth Employment ChallengesIn gener
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implemented 12 of the 90 operations
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Kenya, entrepreneurship training fo
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• Help countries design intervent
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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 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 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 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
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Page 96 and 97: Box A.3Youth as a Demographic Divid
Page 98 and 99: Table A.1Types of Youth Employment
Page 100 and 101: Notes1. This phenomenon could be le
Page 103 and 104: Appendix BEvaluation Data Sources a
Page 105 and 106: Identification and Analysis of the
Page 107 and 108: • Making the labor market work be
Page 109 and 110: Table B.3ApprovalFYList of Projects
Page 111 and 112: Table B.3ApprovalFYList of Projects
Page 113 and 114: Table B.4(I)nvestmentClimate(L)abor
Page 115 and 116: Table B.6List of Economic Sector Wo
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Page 119 and 120: Other evaluations with outcome meas
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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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