Youth Out of School and Out of Work in Latin America : A Cohort Approach
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...
| Main Authors: | , |
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2015
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2015/09/25093410/youth-out-school-out-work-latin-america-cohort-approach http://hdl.handle.net/10986/22844 |
| Summary: | 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. |
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