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Active Labor Market Programs and Youth Employment Cluster

CLUSTER: ACTIVE LABOR MARKET PROGRAMS AND YOUTH EMPLOYMENT

Joblessness and underemployment are some of the most challenging economic and social problems policymakers in developing countries face. The challenge is to find effective training and educational programs that give people the skills to find jobs and boost their earnings power. With the disincentives and dependencies of social transfers, including unemployment insurance, better understood, active labor market and youth employment programs are gaining attention. These programs use training, public works and job search assistance to help increase employment. Nonetheless, best practices have yet to be defined and few of these programs in developing countries have been evaluated.


Policy Issues

  • Are active labor market programs, including those for youth, effective for improving the employability and productivity of the targeted groups in the population?
  • Which interventions are the most cost effective and for whom?
  • How can these programs be better designed, or implemented, to effectively reach those who need them the most?
Sample Impact Evaluation Studies*
Dominican Republic 

Youth Development Program: The program promotes skills development and employment for youth at risk using classroom training and private-sector firm internships. The target population is unemployed, sub-employed and inactive youth aged 16- 29. The impact evaluation study is analyzing whether the program increases youth employment and the quality of jobs they fill, whether it improves participants’ cognitive abilities and whether it reduces risky behavior including drug and alcohol use and risky sexual activity.

India 

National Rural Employment Guarantee: The program guarantees 100 days of employment to all rural households on demand at the state minimum wage. The study is examining how effective participation and cash transfers are in helping participants get follow-on jobs and raise their earnings. A special emphasis is given to how the program may affect men and women differently.

Liberia 

Economic Empowerment of Adolescent Girls: The project is part of the Bank-led Adolescent Girls Initiative, which seeks to promote the economic empowerment of adolescent girls and young women. The project offers training in technical and life skills as well as business development services and micro credit. The target population is adolescent girls and young women aged 15-24. The impact evaluation study is examining how the program affects the employment and earnings of this target group, as well as the influence on a wider range of socioeconomic behaviors and outcomes.

Malawi 

Apprenticeship Program and Entrepreneurial Support for Vulnerable Youth: The program provides vulnerable youth with technical skills and entrepreneurship support to boost their employability and earnings, with the ultimate objective of reducing risky behavior linked with HIV infection. The target population is youth aged 15-24 years old, including orphans and out-of-school youth. The study analyzes the causal effect of the training on labor market outcomes and risky sexual behavior.

South Africa 

Wage Subsidy to Youth: The South African wage subsidy program compensates employers for the risk of hiring young workers. The subsidy is up to half the individual’s wage for the first 6 months of employment. It also offers on the job training (with firm-specific skills) and supports a more active job-search behavior. The target population is unemployed youth aged 20-24 in three provinces in South Africa. The study is assessing whether wage subsidies are effective in improving the probability of obtaining and keeping a job, and whether the subsidies affect firms’ hiring behavior.

Tunisia 

Turning Theses into Enterprises: The country-wide program aims to foster entrepreneurship by providing training to last-year university students to develop a business plan instead of following a standard academic curriculum. At the same time, the program seeks to produce graduates whose skills are more aligned with private sector needs. The impact evaluation study is looks at the impact on employment outcomes.

Can Unemployed Youth Create their Own Jobs? The Tunisia Business Plan Thesis Competition

Turkey 

ISKUR Training Program: ISKUR is the Turkish Employment Agency that provides, among other services, a wide range of vocational training programs for diverse occupations. The agency operates throughout the country. The study seeks to evaluate the effect of the program on employment and earnings.

Uganda 

Northern Uganda Social Action Fund: This program provides youth with vocational skills and capital while supporting community reconciliation and conflict management. The impact evaluation study is looking at the impact of the program on employment and earnings as well as psychosocial well-being. The study is also analyzing the impact of providing additional technical support to a subset of participating groups.

*These evaluations have been funded by SIEF

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