Publication: The Economic Returns to Investing in Youth in Developing Countries : A Review of the Literature
Date
2005-01
ISSN
Published
2005-01
Author(s)
Knowles, James C.
Behrman, Jere R.
Abstract
This is a companion report to Assessing
the Economic Returns to Investing in Youth in Developing
Countries, with focus on the literature reviewed and greater
detail in some parts than in the 2003 study. Both papers
explore the economic case for investments in youth in
developing countries. The current cohort of youth is the
largest cohort ever. The economic, social, and demographic
context of their lives has undergone enormous change, thus
requiring a rethinking and re-evaluation of the range of
investments in youth. This reappraisal must incorporate a
number of critical features including recognition of the
wide range of youth investments, the considerable lag in
effects, and the likelihood that youth investments in one
area affect investments and behavior in other areas. The
paper examines forty-one investments in the following broad
categories: formal schooling; civilian and military
training, work; reproductive health; school-based health;
other health; and community and other. The paper develops a
lifecycle approach using cost-benefit analysis to calculate
the economic returns to investments in youth. However, the
information necessary to apply the methodology is sufficient
for only a few investments in a few countries. Moreover,
even for these cases, the estimated economic returns vary
widely depending on the assumptions used. Despite these
limitations, the available evidence suggests that some types
of investments in youth, e.g., investments in formal
schooling, adult basic education and literacy, some types of
school-based health investments (e.g., micronutrient
supplements and, under certain circumstances, reproductive
health programs), and measures designed to reduce the
consumption of tobacco (e.g., increases in the tobacco tax),
yield economic returns that are at least as high as are
those for many investments in other sectors. The lack of
reliable information on the effects of many investments in
youth is the most important information gap and the area
meriting the highest priority for future research.
Citation
“Knowles, James C.; Behrman, Jere R.. 2005. The Economic Returns to Investing in Youth in Developing Countries : A Review of the Literature. Health, Nutrition and Population (HNP)
discussion paper;. © World Bank, Washington, DC. http://openknowledge.worldbank.org/entities/publication/9e3064db-ce9a-569b-8ba5-72f914c0a359 License: CC BY 3.0 IGO.”