Session 4 Youth Unemployment Wb Presentation

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  • Thank you for inviting me to speak to you. I was thrilled to learn that this Regional Forum decided to focus on the topic of youth employment as one of its focus issues. The World Bank shares your concern about the importance of investing in young people and how their employment is an important piece of this investment. What I would like to do in this talk is to 1. Discuss why the WB dedicated a WDR on youth – its impact on poverty reduction and growth 2. Why youth employment is key to that impact 3. And what policies can help.
  • Session 4 Youth Unemployment Wb Presentation

    1. 1. Development and the Next Generation Meeting the Challenge of Youth Employment Messages from World Development Report 2007 Emmanuel Jimenez, Staff Director, WDR07 And Director, Human Development, East Asia and Pacific www.worldbank.org/wdr2007
    2. 2. I. Why youth? <ul><li>A higher base on which to build human capital to grow and reduce poverty even more </li></ul><ul><li>A large youth cohort is a potential demographic dividend </li></ul>
    3. 3. Demographic Windows of Opportunity
    4. 4. II. Why Youth Employment? <ul><li>Motivation </li></ul><ul><li>Structure/Framework of the Report </li></ul><ul><ul><li>5 Transitions </li></ul></ul><ul><ul><li>3 Policy Lenses </li></ul></ul><ul><li>Applying Framework: Policy Message </li></ul>
    5. 5. Human capital during 5 youth transitions key for poverty reduction and growth 12 100 % of Cohort Age 24 Learning in school after primary-age Working Forming families Participating in civic life Taking health risks
    6. 6. III. Youth Lens on Policy: 3 types of questions asked of each transition Opportunities Capability Second- chances Policies affecting human capital formation during Youth transitions: -- Economy wide policies and insts: macro stability, invest. climate, governance, labor market regulations -- Education -- Training -- Health services -- Welfare & family services -- Infrastructure Youth ‘Lenses’ “ Youth friendly” policies
    7. 7. Countries need to facilitate entry to work
    8. 8. Broadening Labor Market Opportunities <ul><li>Apply youth lens to policies to improve the investment climate: Access to world trade good for many youth </li></ul><ul><li>Reforming institutions that hinder the demand for youth labor </li></ul><ul><ul><li>Removing disincentives to hire inexperienced workers </li></ul></ul><ul><ul><li>Closing the gap between public and private sector pay </li></ul></ul><ul><ul><li>Helping youth entrepreneurs access the capital market </li></ul></ul><ul><li>Facilitating mobility </li></ul>Source: WDR 2007
    9. 9. Across Borders: Migration broadens opportunity for youth <ul><li>Facilitate movement </li></ul><ul><li>Reduce remit costs </li></ul><ul><li>Info campaigns to reduce risks </li></ul><ul><li>Improve invest climate at home </li></ul>Migrants are concentrated among youth. (Figures: Migrants to South Africa and Migrants to United States)
    10. 10. Most young people wish to migrate temporarily
    11. 11. Outline <ul><li>Motivation </li></ul><ul><li>Structure/Framework of the Report </li></ul><ul><li>Applying Framework: Examples </li></ul><ul><ul><li>Opportunity: Countries HAVE policies to expand employment, but it’s important to assess their impact on youth </li></ul></ul><ul><ul><li>Capability </li></ul></ul><ul><ul><li>Second-chances </li></ul></ul>
    12. 12. 3 types of questions asked of each transition: a ‘youth lens’ on policy Opportunities Capability Second- chances Policies affecting human capital formation during Youth transitions: -- Economy wide policies and insts: macro stability, invest. climate, governance, labor market regulations -- Education -- Training -- Health services -- Welfare & family services -- Infrastructure Youth ‘ Lenses ’ “ Youth friendly” policies
    13. 13. Capability: Improve educational quality and relevance <ul><li>Inadequate preparation for adolescence </li></ul><ul><li>Improve access to secondary; quality of basic </li></ul><ul><li>Relevance of education for jobs </li></ul><ul><li>Curriculum reform, Flexibility in educ systems </li></ul>Learning achievement may be low Figure 3. PISA 2003 Mathematics Test Scores Source: WDR 2007
    14. 14. Capability Beyond School: Skills and Entrepreneurship <ul><li>Skills development to meet the demands of the labor market: </li></ul><ul><ul><li>Formal Apprenticeship: </li></ul></ul><ul><ul><ul><li>German “Dual System” </li></ul></ul></ul><ul><ul><ul><li>Australia new apprenticeship combines practical work and structured training </li></ul></ul></ul><ul><ul><li>Training by employers </li></ul></ul><ul><ul><ul><li>60% of firms in EAP provide training </li></ul></ul></ul><ul><li>Entrepreneurship: </li></ul><ul><ul><ul><li>Networking with private sector and mentoring (examples: Endeavor in Argentina, Brazil, Chile, and Mexico) </li></ul></ul></ul><ul><ul><ul><li>Finance and technical assistance to entrepreneurs (example: Chile seed capital program led by CORFO) </li></ul></ul></ul>
    15. 15. Capable decision-making: % of youth who think they have the most influence on human capital decisions
    16. 16. Relieving the Information Constraint: Education in the Dominican Republic <ul><li>Measured = Actual earnings based on worker surveys </li></ul><ul><li>Perceived = Earnings perceived by 8 th grade boys if they finish prim or sec </li></ul><ul><li>Perceived returns < measured returns </li></ul><ul><li>Information campaigns in AND outside schools </li></ul>Source: Jensen ( 2006 )
    17. 17. Incentives also matter. <ul><li>Conditional cash transfers: </li></ul><ul><ul><li>Mexico’s Oportunidades: </li></ul></ul><ul><ul><ul><li>.2 more years of schooling at 13-15 </li></ul></ul></ul><ul><ul><ul><li>reduced child morbidity and mortality </li></ul></ul></ul><ul><ul><li>Bangladesh’s Female Secondary Stipend Program </li></ul></ul><ul><ul><li>Cambodia’s secondary scholarship program for girls </li></ul></ul><ul><li>Higher wages </li></ul>
    18. 18. Outline <ul><li>Motivation </li></ul><ul><li>Structure/Framework of the Report </li></ul><ul><li>Applying Framework to SSA: Examples </li></ul><ul><ul><li>Opportunity </li></ul></ul><ul><ul><li>Capability: Countries have education programs but quality and relevance have to improve; and information and incentives given to youth </li></ul></ul><ul><ul><li>Second-chances </li></ul></ul>
    19. 19. 3 types of questions asked of each transition: a ‘youth lens’ on policy Opportunities Capability Second- Chances Policies affecting human capital formation during Youth transitions: -- Economy wide policies and insts: macro stability, invest. climate, governance, labor market regulations -- Education -- Training -- Health services -- Welfare & family services -- Infrastructure Youth ‘Lenses ’ “ Youth friendly” policies
    20. 20. Who needs Second-chances? Composition of educational attainment level among youth (15-19)
    21. 21. Second-chances: Programs are more sustainable if … <ul><ul><li>They are designed to attract young people (e.g., age-specific education, such as 1/2 of Malawian 19 yr-olds are in primary school; use peer educators) </li></ul></ul><ul><ul><li>They help youth reenter the mainstream (e.g., graduate equivalency programs) </li></ul></ul>
    22. 22. Second-chance employment programs: Success factors <ul><li>Provide work experience -- e.g., Senegal’s AGETIP builds infrastructure </li></ul><ul><ul><li>contractors agree to labor-intensive tech. </li></ul></ul><ul><ul><li>use inexperienced but trained youth </li></ul></ul><ul><ul><li>35,000 person-yrs of employ in 7 yrs </li></ul></ul><ul><li>Provide relevant skills: Joven programs combine tech and life skills training </li></ul><ul><ul><li>In Chile, employment increased by 21 percentage points among participants </li></ul></ul><ul><ul><li>In Argentina, employment increased 10 percentage points and wages increased 10 percent </li></ul></ul><ul><ul><li>Employers surveyed by Entra 21 valued the combination of life skills and technical skills. </li></ul></ul>
    23. 23. Outline <ul><li>Motivation </li></ul><ul><li>Structure/Framework of the Report </li></ul><ul><li>Applying Framework to SSA: Examples </li></ul><ul><ul><li>Opportunity </li></ul></ul><ul><ul><li>Capability </li></ul></ul><ul><ul><li>Second-chances: Prevention; lens Help young people recover from poor outcomes </li></ul></ul>

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