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Youth Employment Programs
By World Bank
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Youth employment issues are a major concern for many countries because they have
negative effects on the welfare of young people, and may also adversely affect economic
performance and social stability. This is the first Independent Evaluation Group (IEG)
evaluation of the World Bank Group’s support to countries trying to address youth employment
issues.
The World Bank lending portfolio for youth employment is relatively small, although
components of programs appear in 57 countries. Most projects include interventions in
skills development and school-to-work transition. Half of the projects include interventions
to foster job creation and work opportunities for youth.
The International Finance Corporation (IFC) has a broad approach to job creation. Between
FY01and FY11, youth employment was not specifically targeted, except in the
Middle East and North Africa region and in a small number of other interventions. IFC
invested $500 million to 50 investment operations and 18 advisory services to education.
Although youth employment is addressed in the education, social protection, and labor
strategies, it is not recognized as an issue in most country strategies - even where youth
unemployment is serious. Youth employment is a multisectoral issue, but few youth employment
projects are implemented by multisectoral teams.
Evidence on what works in youth employment is scarce. Known factors that contribute
to success are a comprehensive approach including participation of the private sector,
monitoring and follow up of individual participants, and complementary interventions,
such as combined training with job search and placement assistance, rather than isolated
interventions. In high-unemployment environments, wage subsidies, skills training, and
job search support are of little impact; and demand-side interventions are needed. Strong
diagnostics are important to design interventions for youth in low-income areas. The
Bank’s few impact evaluations on youth employment examine short-term effects, find
limited positive results, and do not calculate the cost-effectiveness of interventions.
The evaluation makes two recommendations: (i) apply an evidence-based approach to
youth employment operations, and (ii) at the country level, take a strategic approach
to youth employment by addressing the issue comprehensively, working across World
Bank Group teams, with governments and other donors. There is a critical need to
strengthen evidence-based feedback loops to the strategic planning process.
negative effects on the welfare of young people, and may also adversely affect economic
performance and social stability. This is the first Independent Evaluation Group (IEG)
evaluation of the World Bank Group’s support to countries trying to address youth employment
issues.
The World Bank lending portfolio for youth employment is relatively small, although
components of programs appear in 57 countries. Most projects include interventions in
skills development and school-to-work transition. Half of the projects include interventions
to foster job creation and work opportunities for youth.
The International Finance Corporation (IFC) has a broad approach to job creation. Between
FY01and FY11, youth employment was not specifically targeted, except in the
Middle East and North Africa region and in a small number of other interventions. IFC
invested $500 million to 50 investment operations and 18 advisory services to education.
Although youth employment is addressed in the education, social protection, and labor
strategies, it is not recognized as an issue in most country strategies - even where youth
unemployment is serious. Youth employment is a multisectoral issue, but few youth employment
projects are implemented by multisectoral teams.
Evidence on what works in youth employment is scarce. Known factors that contribute
to success are a comprehensive approach including participation of the private sector,
monitoring and follow up of individual participants, and complementary interventions,
such as combined training with job search and placement assistance, rather than isolated
interventions. In high-unemployment environments, wage subsidies, skills training, and
job search support are of little impact; and demand-side interventions are needed. Strong
diagnostics are important to design interventions for youth in low-income areas. The
Bank’s few impact evaluations on youth employment examine short-term effects, find
limited positive results, and do not calculate the cost-effectiveness of interventions.
The evaluation makes two recommendations: (i) apply an evidence-based approach to
youth employment operations, and (ii) at the country level, take a strategic approach
to youth employment by addressing the issue comprehensively, working across World
Bank Group teams, with governments and other donors. There is a critical need to
strengthen evidence-based feedback loops to the strategic planning process.
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