Out of School and Out of Work

The proportion of youth that is not in work or in school or ninis1 in Latin America and the Caribbean (LAC) remains high. The latest estimates show that about 19 per cent of 15-24 years olds in the region, were in this status in 2010 (de Hoyos, Rogers and Popova (2013). This status entails a series of negative implications for the life-cycle development of the youth involved with a break in the human capital accumulation process that translates into a reduction in future productivity and labor market outcomes. A large share of ninis might also entail risks for society at large through potential short-term effects such as crime rates, and through the long-term sequels from not fully capitalizing on the ‘demographic window of opportunity’ of historically low economic dependency ratios, among others. The objective of this paper is to develop a conceptual framework for laying out the main elements involved in the dynamics of choices and restrictions faced by youth in the 15-24 age range. The paper also discusses different approaches that could be used to test the empirical validity of the theoretical implications presented here. The paper includes four sections. Section two starts with a simple characterization of the life-cycle transition of time uses for youth in LAC. Section three introduces a more formal presentation of what underlies these processes and what impact they may have. Section four addresses the considerations for empirical analyses and policy discussion. The last section includes some final remarks.

Bibliographic Details

Main Authors:	Behrman, Jere R., de Hoyos, Rafael, Székely, Miguel
Format:	Report biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2014-09
Subjects:	EMPLOYMENT, RISKS, CAPITAL MARKETS, UNEMPLOYMENT RATES, MOTIVATION, PRODUCTION, CURRENT LABOR FORCE, LOCAL ECONOMY, DROPOUTS, YOUTH EMPLOYMENT, INCOME, INTEREST, YOUTH CENTERS, RATE OF RETURN, PRIVATE OPPORTUNITY COSTS, REAL EXCHANGE RATES, EXPECTATIONS, EMPLOYMENT OPPORTUNITIES, MARGINAL COST, INTEREST RATE, EXCHANGE, UTILITY MAXIMIZATION, INFORMATION, LABOR FORCE, LIQUIDITY, DEVELOPING COUNTRIES, HOUSEHOLD BARGAINING, WELFARE, EFFECTS, INCENTIVES, MACROECONOMIC CONDITIONS, VARIABLES, BUDGET CONSTRAINTS, CASH TRANSFER, DECISIONS, INFLATION, BUDGET, DEVELOPMENT, CHOICE, LABOR MARKET, INFLUENCE, COSTS, MARKET RETURN, PER CAPITA INCOME, TRAINING, MARKET VALUES, ECONOMIC COOPERATION, EXCHANGE RATES, LIQUIDITY CONSTRAINTS, PRODUCTIVITY, ECONOMETRICS, INTEREST RATES, LABOR PRODUCTIVITY, OPTIONS, CHILD DEVELOPMENT, TRANSFERS, IMPERFECT INFORMATION, VIOLENCE, CRITERIA, MARKETS, PRIVATE INVESTMENT, RETURN, GANGS, LABOR, CAPITAL STOCKS, UTILITY, YOUTH DEVELOPMENT, CAPITAL INVESTMENTS, EXOGENOUS INCOME, RULE OF LAW, FINANCE, ECONOMIC RESEARCH, FEMALE LABOR, UNEMPLOYMENT, EQUITY, ALTERNATIVE INVESTMENTS, MACROECONOMIC ENVIRONMENT, CONSUMPTION, GENERAL EQUILIBRIUM, BUDGET CONSTRAINT, HUMAN CAPITAL, TEENAGE PREGNANCY, CAPITAL, WAGES, POLICIES, PRIVATE MARGINAL COST, ACCESS TO CAPITAL, FUTURE, MARKET PRICES, AGE, VALUE, RETURNS, ECONOMIC SECTORS, UTILITY FUNCTION, MARGINAL BENEFITS, MARGINAL COSTS, AGRICULTURE, YOUTH, SOCIAL NETWORKS, SHARES, OPPORTUNITY COSTS, MARKET, MARKET VALUE, PRODUCTION FUNCTION, ENDOGENOUS VARIABLES, ECONOMICS, LABOR MARKET RIGIDITIES, INFLATION RATES, FUNCTIONAL FORMS, TRADE, GDP, GOODS, CHILDREN, STOCKS, INVESTMENT, RISK, RATES OF RETURN, HUMAN RESOURCES, SHARE, POVERTY, BARGAINING, SUPPLY, YOUNG PEOPLE, YOUTH TRAINING, LABOR SUPPLY, LAW, ECONOMIC DEPENDENCY, BORROWING, INVESTMENTS, RATES OF RETURNS, YOUTH UNEMPLOYMENT, PUBLIC SPENDING, LABOR MARKETS, TEMPORARY EMPLOYMENT, OUTCOMES, MARGINAL PROPENSITY TO CONSUME, POSITIVE EFFECTS, MIDDLE INCOME COUNTRIES, PRICES, DEVELOPMENT BANK, FUTURE LABOR, FUTURE RESEARCH, INVESTING,
Online Access:	http://documents.worldbank.org/curated/en/2016/01/25811336/out-school-out-work-conceptual-framework-investigating-ninis-latin-america-caribbean https://hdl.handle.net/10986/23835
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