Youth Employment Programs - Independent Evaluation Group

Organization for Standardization (ISO) management certification and formaltraining programs with Internet use. These factors are especially importantfor young firms and small and medium enterprises (SMEs) (Dutz and others2011). Youth who cannot find work in rural areas tend to migrate (box A.2).Labor Supply Side: Education and SkillsEmployers identify the lack of skilled labor as a major constraint to doingbusiness. Country program analysis indicates that workers without acompleted primary education do not qualify for most wage jobs in mediumand large enterprises. Many workers lack cognitive skills regardless of theirlevel of educational attainment. The lack of catalytic skills is particularlyharmful for the development of the service sector—where communicationand other social abilities are important. School dropouts are not trained infinancial literacy, including spending and saving, and they lack informationon the variables that affect business development.The level of education and skills can have a positive impact on youthemployment. Rising levels of education of youth cohorts can respond to thedemand for more educated workers in growing economies (as human capitalcomplements physical capital). Education is also closely tied to upwardmobility in income and occupation, increasing the probability that workerscan move out of agriculture, casual, and low-wage jobs into better-paid jobsand more stable employment. Thus, productivity can be augmented througheducation and training. In addition, education may permit a better job matchas educated youth tend to be more efficient in acquiring and processing jobsearch information. Firms also tend to engage in greater hiring efforts forhigher-wage, skilled jobs (the cost of keeping unfilled vacancies is higher).Box A.2Rural Investment and Employment Opportunities Affect YouthMigrationRural areas generally offer fewer employmentopportunities, causing young people to eithermigrate to urban areas or work locally in lowerincomeagriculture and informal sector jobs. Ifjobs were available in rural areas, young peoplemight remain in place, as suggested by Facebookusers who responded to an IEG poll. Urban areasin Africa have been very slow to create jobs toaccommodate the increasing numbers of youngmale migrants. As a result, migrants are morelikely to be unemployed and out of the laborforce than their non-migrant counterparts (WorldBank 2008–09).Would you stay in rural areas ifthere were jobs for youth?No(n = 39),22%Yes(n = 140),78%Source: IEG; Facebook Users, 2012. See appendix G.58 Youth Employment Programs