Youth Employment Programs - Independent Evaluation Group
Youth Employment Programs - Independent Evaluation Group Youth Employment Programs - Independent Evaluation Group
awarded vouchers to about 1,000 out-of-school youth for technical andvocational training. Among voucher winners, a random half were awarded avoucher that could only be used in public vocational institutions, whereas thevoucher for the other half could be used in both private and public schools.The unrestricted group had a significantly higher training uptake of 79percent compared to 69 percent in the public institution-only group. Studentsin private sector training reported lower dropout rates. Females have higherreturns to training than males do, but males report higher returns for selfemployment.The evaluation for labor market outcomes is ongoing and resultsare expected by September 2012. 4Information about returns to training affects choices by young women, andlabor outcomes. In Kenya, girls received information on the relative returnsto vocational training on female- and male-dominated trades. The informedgirls were five percentage points more likely to enroll in male-dominatedcourses (Hjort and others 2010). Peru’s ProJoven program provides skillstraining and internships. It encouraged equal participation between men andwomen in its training courses—especially for traditionally male-dominatedoccupations. Eighteen months later, girls reported a 15 percent increase inemployment and 93 percent higher earnings (Ñopo and others 2007).Short-Term Skills Building ProgramsShort-term skills building programs are more effective when three featuresare present (Fares and Puerto 2009; Betcherman and others 2007), but fewBank projects contain all of them. They include: (i) private sector involvementin training; (ii) classroom instruction combined with employer attachment(internship, apprenticeship); and (iii) training combined with other services,such as job counseling. Almost 40 percent of Bank-supported skills-buildingprojects provide work-based training, but only 17 percent of projects use acomprehensive approach with the private sector participating in education,counseling, and work-based training (appendix F, table F.3). However, theprivate sector is still small in many low-income countries.The few studies of the employment effects of Bank-supported short-termskills building for unemployed youth suggest questionable results. In Turkey,12,453 unemployed youth received skills training supported by the Bank.The dropout rate was 12 percent and the placement rate 43 percent in 2006.However, no medium-term information is available on employment. Theremaining one-third of the project portfolio with short-term skills buildingdid not track employment data. Many skills-building programs support thetransport and residential expenses of trainees, which is helpful for youthfrom lower-income groups. However, no information is collected on thedistributional impact of skills building.Three Bank impact evaluations suggest short-term skills building has hadlimited effects in Latin America (appendix F, table F.4). The Chile Calificaevaluation found no employment impact and only positive monthly wage44 Youth Employment Programs
impacts for participants older than 40 years of age (Santiago Consultores2009). The Juventud y Empleo program in the Dominican Republic featuresseveral weeks of basic skills training by a private provider followed by atwo-month internship with fully subsidized wage and limited follow-up withcounseling and technical assistance. Nearly all interns were let go after theinternship. The program had no effect on participants’ employment, buta modest impact on earnings (Card and others 2011). The IDB-supportedColombia Jovenes en Accion program reached 80,000 participants over fouryears with classroom training by a private provider and on-the-job trainingin a registered company. The main impact is a shift from informal to formalemployment, but there was no overall employment effect. Job qualityimproved through an increase in formal sector employment by 6.8 percentagepoints and in earnings by 19.6 percent. Effects were stronger for women thanfor men (Attanasio and others 2011).Women are often benefiting more than men are from non-formal, short-termskills training. Latin America has several short-term training programsthat are part of ALMPs. These courses provide basic job readiness skills forunemployed and disadvantaged youth. For example, the Mexican Probecatoffers short-term, on-the-job training complemented by internships in theprivate sector (Delajara and others 2006). El Salvador and Honduras haveintroduced such programs as well. These short-term training programsgenerally report higher employment rates for women, better earnings, andshorter cost-recovery times.There has been a lack of attention in collecting labor market outcome andcost-effectiveness data in skills development projects (see appendix F formore details), which was similarly noted in other recent IEG evaluations (IEG2010; IEG 2011c).The Bank’s Impact Evaluations on Youth EmploymentThe Bank’s impact evaluations examine short-term effects, find limitedpositive results, and often fail to address issues important for policymaking.All seven impact evaluations examine short-term effects. Two of them(Uganda and Kenya) currently collect follow-up data collection. Early findingson what works are inconclusive. In sum:• Short-term training with internships seems to work in Colombia, but notin the Dominican Republic.• Entrepreneurship training for university graduates in Tunisia has a negligibleself-employment effect and no employment and earning effect;• Entrepreneurship training appears promising in rural areas in Ugandaand Colombia.• Men report better labor market outcomes for self-employment thanwomen, who do better in skills training.What is the Evidence on the Effectiveness of Support to Youth Employment? 45
- 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
- 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 82 and 83: • Comparing the interventions ana
- Page 84 and 85: Hjort, Jonas, Michael Kremer, Isaac
- 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
- 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
- Page 117 and 118: ment, Private Sector Development, a
- Page 119 and 120: Other evaluations with outcome meas
- Page 121 and 122: Table B.8CountryFranceKenyaMexicoPa
- Page 123 and 124: Table B.8CountryUnitedStatesYouth E
- Page 125 and 126: Table B.8CountryEuropeancountriesLa
- Page 127 and 128: Bidani, Benu, Niels-Hugo Blunch, Ch
- Page 129: Training Replication Sites.” Manp
awarded vouchers to about 1,000 out-of-school youth for technical andvocational training. Among voucher winners, a random half were awarded avoucher that could only be used in public vocational institutions, whereas thevoucher for the other half could be used in both private and public schools.The unrestricted group had a significantly higher training uptake of 79percent compared to 69 percent in the public institution-only group. Studentsin private sector training reported lower dropout rates. Females have higherreturns to training than males do, but males report higher returns for selfemployment.The evaluation for labor market outcomes is ongoing and resultsare expected by September 2012. 4Information about returns to training affects choices by young women, andlabor outcomes. In Kenya, girls received information on the relative returnsto vocational training on female- and male-dominated trades. The informedgirls were five percentage points more likely to enroll in male-dominatedcourses (Hjort and others 2010). Peru’s ProJoven program provides skillstraining and internships. It encouraged equal participation between men andwomen in its training courses—especially for traditionally male-dominatedoccupations. Eighteen months later, girls reported a 15 percent increase inemployment and 93 percent higher earnings (Ñopo and others 2007).Short-Term Skills Building <strong>Programs</strong>Short-term skills building programs are more effective when three featuresare present (Fares and Puerto 2009; Betcherman and others 2007), but fewBank projects contain all of them. They include: (i) private sector involvementin training; (ii) classroom instruction combined with employer attachment(internship, apprenticeship); and (iii) training combined with other services,such as job counseling. Almost 40 percent of Bank-supported skills-buildingprojects provide work-based training, but only 17 percent of projects use acomprehensive approach with the private sector participating in education,counseling, and work-based training (appendix F, table F.3). However, theprivate sector is still small in many low-income countries.The few studies of the employment effects of Bank-supported short-termskills building for unemployed youth suggest questionable results. In Turkey,12,453 unemployed youth received skills training supported by the Bank.The dropout rate was 12 percent and the placement rate 43 percent in 2006.However, no medium-term information is available on employment. Theremaining one-third of the project portfolio with short-term skills buildingdid not track employment data. Many skills-building programs support thetransport and residential expenses of trainees, which is helpful for youthfrom lower-income groups. However, no information is collected on thedistributional impact of skills building.Three Bank impact evaluations suggest short-term skills building has hadlimited effects in Latin America (appendix F, table F.4). The Chile Calificaevaluation found no employment impact and only positive monthly wage44 <strong>Youth</strong> <strong>Employment</strong> <strong>Programs</strong>