Youth Employment Programs - Independent Evaluation Group

Table A.1Types of Youth Employment Problems, Determinants, and MainStrategic DirectionsNature of problem Related determinants Main strategic directionsYouth unemploymenthigh (or rising)for all groupsof young workersHigh youth unemployment,mostlyfor less educatedHigh youth unemploymentconcentratedin subgroupsof youth population(minorities, poor)High youth unemploymentforhighly-educatedyoung workersLarge number ofcasual, low-productivity,low-paidjobs held by youthSource: Riboud 2012.• Lack of growth and net job creation• Business recession• Large cohorts of new entrants not absorbedby job supply• Restrictive labor legislation• Skill-biased growth (demand for unskilledworkers increasing less than for skilledworkers)• Downturn of business cycle• Demand for workers (usually with low educationlevels) increasing little with growth,and disproportionately affected duringrecessions• Discrimination• Lack of (or slow) growth and insufficient jobcreation• Segmented labor market with differentwork conditions and pay across sectors• Inefficient education and training sector(inadequate skills)• Stage of economic development with a largeinformal sector• Low level of education of youth cohorts• Phenomenon accentuated in case of segmentationof labor market and restrictivelabor legislation in the formal sector• Policies improving investment climate and businessenvironment (political stability, security,tax, infrastructure, openness to trade)• Labor market reforms providing more flexibility(contracting, pay)• Growth and investment policies• Education and training policies to increase humancapital of youth• Flexible labor market with wage premiums forhigher levels of skills• Policies improving investment climate andfostering growth• Targeted education and training programs toraise human capital and employability• Antidiscrimination policies• Policies to improve investment climate, businessenvironment, and promote growth• Labor market policies to increase flexibility andreduce segmentation• Quality and relevance of education and trainingprograms, information about labor marketopportunities• Policies fostering job creation to induce gradualtransformation of the economy (move fromcasual to more formal jobs)• Education and training policies and programs toraise the human capital level of youth cohorts• Labor market reforms to allow greater flexibilityand reduce segmentation.entrepreneurship and growth are crucial to increasing net job creationand labor demand. In some contexts, they may need to be accompanied byeducation policies and labor market reforms.Youth Employment InterventionsThis evaluation has categorized interventions into three areas: investmentclimate, labor market, and education (see table 4.1 in the main text).Investment Climate: “Fostering Job Creation and Work Opportunities”Investment climate interventions include measures to increase labor demandfor youth, provide new self-employment opportunities, or reduce labormarket rigidities. The goal is to improve the business environment, openthe economy to trade, foster investment and growth, and create jobs withincreased earning power. Without net job creation, all other interventions62 Youth Employment Programs