Unpacking Youth Unemployment in Latin America

High youth unemployment rates may be a signal of difficult labor market entry for youth or may reflect high churning. The European and United States literature finds the latter conclusion while the Latin American literature suggests the former. Thi...

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Main Author: Cunningham, Wendy
Format: Policy Research Working Paper
Language:English
Published: 2012
Subjects:
Online Access:http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090824083220
http://hdl.handle.net/10986/4218
id okr-10986-4218
recordtype oai_dc
spelling okr-10986-42182021-04-23T14:02:16Z Unpacking Youth Unemployment in Latin America Cunningham, Wendy ADOLESCENTS ADULT MALES ADULT MEN ADULT WOMEN ADULT WORKERS AGE CATEGORIES AGE GROUP AGE GROUPS APPRENTICESHIP ATTRITION AVERAGE UNEMPLOYMENT ECONOMIC ANALYSIS EMPLOYMENT OUTLOOK EMPLOYMENT PROGRAM EMPLOYMENT STATUS EMPLOYMENT TRENDS FINDING EMPLOYMENT GENDER GAP HIGH UNEMPLOYMENT HIGH UNEMPLOYMENT RATES HOUSEHOLD INCOME HUMAN DEVELOPMENT INFORMAL SECTOR JOB EXPERIENCE JOB SEARCH JOB TRAINING JOB TURNOVER JOBS LABOR ECONOMICS LABOR FORCE LABOR FORCE ATTACHMENT LABOR MARKET LABOR MARKET TURNOVER LABOR MARKETS LABOR TURNOVER LABOUR LOW UNEMPLOYMENT LOW UNEMPLOYMENT RATES MALE YOUTH MODERATE UNEMPLOYMENT MOTIVATION NUMBER OF PEOPLE OLDER ADULTS PERMANENT JOB POLICY RESEARCH POLICY RESEARCH WORKING PAPER POOR FAMILIES POOR HOUSEHOLDS POOR PEOPLE PRESENTS UNEMPLOYMENT PRIME AGE PRODUCTIVE ACTIVITIES PRODUCTIVITY PROGRESS RETIREMENT SALARIED EMPLOYMENT SCHOOL AGE SECONDARY SCHOOL SEX SOCIAL ISSUES SOCIAL SECURITY TEENAGERS TOTAL LABOR FORCE TOTAL UNEMPLOYMENT UNEMPLOYED UNEMPLOYED POOR UNEMPLOYED YOUTH UNEMPLOYMENT DURATION UNEMPLOYMENT DURATIONS UNEMPLOYMENT SPELL UNEMPLOYMENT SPELLS UNEMPLOYMENT TRANSITION URBAN AREAS WAGE EMPLOYMENT WAGE SUBSIDIES YOUNG ADULT YOUNG ADULT WOMEN YOUNG ADULTS YOUNG MEN YOUNG PEOPLE YOUNG PERSON YOUNG WOMEN YOUNG WORKERS YOUTH YOUTH LABOR YOUTH POPULATION YOUTH RATES YOUTH UNEMPLOYMENT YOUTH UNEMPLOYMENT RATE YOUTH UNEMPLOYMENT RATES YOUTH VIOLENCE High youth unemployment rates may be a signal of difficult labor market entry for youth or may reflect high churning. The European and United States literature finds the latter conclusion while the Latin American literature suggests the former. This paper uses panel data to examine whether Latin American youth follow OECD patterns or are, indeed, unique. By decomposing transition matrices into propensity to move and rate of separation matrices and estimating duration matrices, the authors find that Latin American youth do follow the OECD trends: their high unemployment reflects high churning while their duration of unemployment is similar to that of non-youth. The paper also finds that young adults (age 19-24) have higher churning rates than youth; most churning occurs between informal wage employment, unemployment, and out-of-the labor force, even for non-poor youth; and unemployment probabilities are similar for men and women when the analysis control for greater churning by young men. The findings suggest that the "first employment" programs that have become popular in the region are not addressing the key constraints to labor market entry for young people and that more attention should be given to job matching, information, and signaling to improve the efficiency of the churning period. 2012-03-19T19:12:03Z 2012-03-19T19:12:03Z 2009-08-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090824083220 http://hdl.handle.net/10986/4218 English Policy Research working paper ; no. WPS 5022 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper Latin America & Caribbean Latin America & Caribbean
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ADOLESCENTS
ADULT MALES
ADULT MEN
ADULT WOMEN
ADULT WORKERS
AGE CATEGORIES
AGE GROUP
AGE GROUPS
APPRENTICESHIP
ATTRITION
AVERAGE UNEMPLOYMENT
ECONOMIC ANALYSIS
EMPLOYMENT OUTLOOK
EMPLOYMENT PROGRAM
EMPLOYMENT STATUS
EMPLOYMENT TRENDS
FINDING EMPLOYMENT
GENDER GAP
HIGH UNEMPLOYMENT
HIGH UNEMPLOYMENT RATES
HOUSEHOLD INCOME
HUMAN DEVELOPMENT
INFORMAL SECTOR
JOB EXPERIENCE
JOB SEARCH
JOB TRAINING
JOB TURNOVER
JOBS
LABOR ECONOMICS
LABOR FORCE
LABOR FORCE ATTACHMENT
LABOR MARKET
LABOR MARKET TURNOVER
LABOR MARKETS
LABOR TURNOVER
LABOUR
LOW UNEMPLOYMENT
LOW UNEMPLOYMENT RATES
MALE YOUTH
MODERATE UNEMPLOYMENT
MOTIVATION
NUMBER OF PEOPLE
OLDER ADULTS
PERMANENT JOB
POLICY RESEARCH
POLICY RESEARCH WORKING PAPER
POOR FAMILIES
POOR HOUSEHOLDS
POOR PEOPLE
PRESENTS UNEMPLOYMENT
PRIME AGE
PRODUCTIVE ACTIVITIES
PRODUCTIVITY
PROGRESS
RETIREMENT
SALARIED EMPLOYMENT
SCHOOL AGE
SECONDARY SCHOOL
SEX
SOCIAL ISSUES
SOCIAL SECURITY
TEENAGERS
TOTAL LABOR FORCE
TOTAL UNEMPLOYMENT
UNEMPLOYED
UNEMPLOYED POOR
UNEMPLOYED YOUTH
UNEMPLOYMENT DURATION
UNEMPLOYMENT DURATIONS
UNEMPLOYMENT SPELL
UNEMPLOYMENT SPELLS
UNEMPLOYMENT TRANSITION
URBAN AREAS
WAGE EMPLOYMENT
WAGE SUBSIDIES
YOUNG ADULT
YOUNG ADULT WOMEN
YOUNG ADULTS
YOUNG MEN
YOUNG PEOPLE
YOUNG PERSON
YOUNG WOMEN
YOUNG WORKERS
YOUTH
YOUTH LABOR
YOUTH POPULATION
YOUTH RATES
YOUTH UNEMPLOYMENT
YOUTH UNEMPLOYMENT RATE
YOUTH UNEMPLOYMENT RATES
YOUTH VIOLENCE
spellingShingle ADOLESCENTS
ADULT MALES
ADULT MEN
ADULT WOMEN
ADULT WORKERS
AGE CATEGORIES
AGE GROUP
AGE GROUPS
APPRENTICESHIP
ATTRITION
AVERAGE UNEMPLOYMENT
ECONOMIC ANALYSIS
EMPLOYMENT OUTLOOK
EMPLOYMENT PROGRAM
EMPLOYMENT STATUS
EMPLOYMENT TRENDS
FINDING EMPLOYMENT
GENDER GAP
HIGH UNEMPLOYMENT
HIGH UNEMPLOYMENT RATES
HOUSEHOLD INCOME
HUMAN DEVELOPMENT
INFORMAL SECTOR
JOB EXPERIENCE
JOB SEARCH
JOB TRAINING
JOB TURNOVER
JOBS
LABOR ECONOMICS
LABOR FORCE
LABOR FORCE ATTACHMENT
LABOR MARKET
LABOR MARKET TURNOVER
LABOR MARKETS
LABOR TURNOVER
LABOUR
LOW UNEMPLOYMENT
LOW UNEMPLOYMENT RATES
MALE YOUTH
MODERATE UNEMPLOYMENT
MOTIVATION
NUMBER OF PEOPLE
OLDER ADULTS
PERMANENT JOB
POLICY RESEARCH
POLICY RESEARCH WORKING PAPER
POOR FAMILIES
POOR HOUSEHOLDS
POOR PEOPLE
PRESENTS UNEMPLOYMENT
PRIME AGE
PRODUCTIVE ACTIVITIES
PRODUCTIVITY
PROGRESS
RETIREMENT
SALARIED EMPLOYMENT
SCHOOL AGE
SECONDARY SCHOOL
SEX
SOCIAL ISSUES
SOCIAL SECURITY
TEENAGERS
TOTAL LABOR FORCE
TOTAL UNEMPLOYMENT
UNEMPLOYED
UNEMPLOYED POOR
UNEMPLOYED YOUTH
UNEMPLOYMENT DURATION
UNEMPLOYMENT DURATIONS
UNEMPLOYMENT SPELL
UNEMPLOYMENT SPELLS
UNEMPLOYMENT TRANSITION
URBAN AREAS
WAGE EMPLOYMENT
WAGE SUBSIDIES
YOUNG ADULT
YOUNG ADULT WOMEN
YOUNG ADULTS
YOUNG MEN
YOUNG PEOPLE
YOUNG PERSON
YOUNG WOMEN
YOUNG WORKERS
YOUTH
YOUTH LABOR
YOUTH POPULATION
YOUTH RATES
YOUTH UNEMPLOYMENT
YOUTH UNEMPLOYMENT RATE
YOUTH UNEMPLOYMENT RATES
YOUTH VIOLENCE
Cunningham, Wendy
Unpacking Youth Unemployment in Latin America
geographic_facet Latin America & Caribbean
Latin America & Caribbean
relation Policy Research working paper ; no. WPS 5022
description High youth unemployment rates may be a signal of difficult labor market entry for youth or may reflect high churning. The European and United States literature finds the latter conclusion while the Latin American literature suggests the former. This paper uses panel data to examine whether Latin American youth follow OECD patterns or are, indeed, unique. By decomposing transition matrices into propensity to move and rate of separation matrices and estimating duration matrices, the authors find that Latin American youth do follow the OECD trends: their high unemployment reflects high churning while their duration of unemployment is similar to that of non-youth. The paper also finds that young adults (age 19-24) have higher churning rates than youth; most churning occurs between informal wage employment, unemployment, and out-of-the labor force, even for non-poor youth; and unemployment probabilities are similar for men and women when the analysis control for greater churning by young men. The findings suggest that the "first employment" programs that have become popular in the region are not addressing the key constraints to labor market entry for young people and that more attention should be given to job matching, information, and signaling to improve the efficiency of the churning period.
format Publications & Research :: Policy Research Working Paper
author Cunningham, Wendy
author_facet Cunningham, Wendy
author_sort Cunningham, Wendy
title Unpacking Youth Unemployment in Latin America
title_short Unpacking Youth Unemployment in Latin America
title_full Unpacking Youth Unemployment in Latin America
title_fullStr Unpacking Youth Unemployment in Latin America
title_full_unstemmed Unpacking Youth Unemployment in Latin America
title_sort unpacking youth unemployment in latin america
publishDate 2012
url http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090824083220
http://hdl.handle.net/10986/4218
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