Youth Out of School and Out of Work in Latin America

This paper examines the phenomena of high rates of youth that are out of school and out of work in Latin America. The analysis pursues a dynamic approach by constructing a pseudo-panel from 234 household surveys for 18 countries in the region that allow tracing the life cycle trajectories of different cohorts over time. The trajectories are associated with a series of variables characterizing the household, community, and macro environment in which schooling and labor market participation decisions take place. The most important result obtained is that the persistently high rates of being out of school and out of work among males are strongly associated with greater labor force participation by women, which can be generating a “crowding out” effect against men, given slow job creation rates across the region. The analysis also explores the possibility of scarring effects, and finds that higher shares of out of school and out of work youth at ages 15–20 years are associated with lower wages for the same cohorts later in life, at ages 35–40 years, for males and females. As for employment prospects, the analysis finds scarring effects only for females, with greater out of school and out of work youth shares being related to lower proportions of women in the labor market later in the life cycle.

Bibliographic Details

Main Authors:	Székely, Miguel, Karver, Jonathan
Format:	Working Paper biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2015-09
Subjects:	JOBS, EMPLOYMENT, RISKS, HOUSEHOLD SURVEY, UNEMPLOYMENT RATES, RIGHTS, MOTIVATION, ECONOMIC GROWTH, PRODUCTION, EMPLOYMENT GENERATION, ADULT WORKERS, INFORMAL SECTOR, PREVIOUS SECTION, YOUTH EMPLOYMENT, INCOME, LABOR LEGISLATION, LABOR MARKET NEEDS, HOUSEHOLD STRUCTURE, YOUTH GROUPS, EMPLOYMENT OPPORTUNITIES, ECONOMIC VOLATILITY, AGE GROUP, INFORMATION, LABOR FORCE, POLITICAL ECONOMY, JOB, FEMALE EMPLOYMENT, EFFECTS, LABOR MARKET REGULATION, INCENTIVES, LABOR ECONOMICS, EMPLOYMENT RATES, LABOR FORCE PARTICIPATION, ASSOCIATIONS, PRESENT ANALYSIS, EMPLOYMENT TRENDS, EMPLOYMENT OUTCOMES, LABOR MARKET EXPERIENCE, ECONOMIC SHOCK, PRESENT VALUE, LABOR MARKET, EXOGENOUS SHOCKS, TRAINING, EMPLOYMENT LEVELS, DEVELOPMENT ECONOMICS, EDUCATIONAL ATTAINMENT, ECONOMIC MOBILITY, DISPLACEMENT, INCOME INEQUALITY, PRODUCTIVITY, LABOR PRODUCTIVITY, UNEMPLOYED, ATTRITION, TRANSFERS, IMPERFECT INFORMATION, VIOLENCE, EARNINGS LOSSES, JOB MARKET, MARKETS, ORGANIZATIONS, VOCATIONAL EDUCATION, HOUSEHOLD SURVEYS, STANDARDS, LABOR, PRIMARY SCHOOL, PRIME AGE, CAPITAL INVESTMENTS, MORTALITY, WAGE LEVELS, FEMALE LABOR, UNEMPLOYMENT, YOUTH LABOR, YOUTH RATES, HUMAN CAPITAL, VOCATIONAL TRAINING, YOUNG ADULTS, WORKERS, DISPLACED WORKERS, LABOR MARKET CONDITIONS, WAGES, POLICIES, SUBSTITUTION EFFECTS, AGE, VALUE, AVERAGE WAGE, WAGE RATES, AGE GROUPS, EMPLOYMENT STATUS, YOUTH, LABOR MARKET OUTCOMES, JOB CREATION, EDUCATIONAL SERVICES, LABOR RELATIONS, SECONDARY SCHOOLING, LABOR MARKET INDICATORS, TRADE LIBERALIZATION, ADOLESCENTS, ECONOMICS, MANPOWER, SKILLED LABOR, LABOR ORGANIZATION, WAGE STRUCTURE, CHILDREN, YOUTH SERVICES, SECURITY, EMPLOYABILITY, SUBSTITUTION EFFECT, INVESTMENT, RISK, HUMAN RESOURCES, PRIVATE COSTS, FEMALE LABOR FORCE, SUPPLY, YOUNG PEOPLE, LABOR SUPPLY, LAW, PRIMARY LEVEL, CHILD LABOR, LOCAL LABOR MARKET, LABOUR SUPPLY, PRIMARY EDUCATION, YOUTH UNEMPLOYMENT, LABOUR, LABOR MARKETS, ECONOMIC SHOCKS, OUTCOMES, LOW EMPLOYMENT, EMPLOYMENT PROSPECTS, UNSKILLED LABOR, PRICES, FINDING EMPLOYMENT, FUTURE LABOR, ECONOMIC CONDITIONS, PRODUCTION PROCESSES, JOB DISPLACEMENT,
Online Access:	http://documents.worldbank.org/curated/en/2015/09/25093410/youth-out-school-out-work-latin-america-cohort-approach https://hdl.handle.net/10986/22844
Tags:	Add Tag No Tags, Be the first to tag this record!