Publication: The Private Sector and Youth Skills and Employment Programs in Low and Middle-Income Countries
Loading...
Published
2015
ISSN
Date
2015-12-09
Author(s)
Editor(s)
Abstract
Getting youth into productive employment is an urgent policy issue for countries around the world. Many governments in low and middle-income countries are actively engaged in policies to help youth attain the skills they need to do well in work and in life, as well as to find suitable employment. The involvement of the private sector in youth skills development and employment is a complex issue because the nature of the firms and their motivations vary significantly. Multinational corporations operating in low and middle-income countries may be motivated by direct productivity or profit objectives - to secure a skilled workforce, or reliable suppliers - but also, or even primarily, by corporate social responsibility (CSR) factors. Firms that supply training or employment services will be driven by profit considerations when entering these markets and deciding what services to offer and to whom. The purpose of this paper is threefold: (1) to provide a comprehensive look at the way the private sector is involved in youth skills and employment in low- and middle-income countries, considering the broad range of program types and firm types; (2) to present and interpret the available evidence of the effectiveness of this involvement; and (3) to understand where the private sector has been most effective at promoting young people’s labor market success, and what can be done to enhance the role of the private sector to achieve this objective. The report is organized as follows: chapter one gives introduction. Chapter two provides background to the analysis of the private sector role in youth employment in low- and middle-income countries. In chapter three the authors characterize the private sector’s role more systematically using the youth employment inventory, a global database of interventions that are designed to integrate young people into the labor market. Chapter four reviews the evidence of effectiveness of youth interventions involving the private sector. Chapter five briefly draws together strands from the previous review, as well as from the broader literature, to gain an understanding of the institutional and other factors leading to (and in other cases preventing) successful public-private partnerships for youth employment. Chapter six summarizes the main findings of this review, and is followed by a discussion of key gaps in knowledge on the role of the private sector in different types of youth employment intervention that future research should attempt to address, and a review of the main lessons for policy and programming emerging from the study.
Link to Data Set
Citation
“Glick, Peter J.; Huang, Crystal; Mejia, Nelly. 2015. The Private Sector and Youth Skills and Employment Programs in Low and Middle-Income Countries. © World Bank. http://hdl.handle.net/10986/23260 License: CC BY 3.0 IGO.”
Digital Object Identifier
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Providing Skills for Equity and Growth(Washington, DC, 2010)The scope of this report is twofold. First, it documents skills gaps and mismatches and attempts to understand the reasons for them. Second, it provides a framework for thinking about skills development, drawing on international best practices, with the intent of stimulating further discussion. Given the breadth of the task, in this report we narrow the focus on a particular segment of the labor force: unskilled youth. There are several reasons sustaining this choice. First, unskilled youth, most of whom are out of school and have little chance to integrate themselves into the labor market, represent a significant share of the labor force that will remain active for the next 30 or 40 years. If nothing is done, out-of school youth will benefit at best only marginally from growth, and may even become an obstacle to sustaining growth in the long term. Second, the current educational system still faces a strong challenge in retaining students, and unskilled youth are likely to remain high on the agenda in the next decade or even longer. Finally, in the past decade, training programs designed specifically for out-of-school youth have begun to emerge around the developing world, in particular in Latin America, and recent evaluations suggest that they can be effective in increasing productivity and the chance of finding employment. Nevertheless, many of the findings of this report extend to overall skills development in Cambodia. In particular, the report points to significant market failures preventing both firms and training providers from offering quality training at all levels, as well as the need to develop certification and accreditation systems that are valued and recognized by employers and span all levels of education. The report proceeds in four chapters. The first covers demographic trends and the labor market. The second looks at skills gaps and mismatches. The third reviews existing training providers. The concluding chapter considers policy options in going forward.Publication Building Effective Employment Programs for Unemployed Youth in the Middle East and North Africa(Washington, DC: World Bank, 2013)This study surveys active labor market programs (ALMPs) in selected countries of the Middle East and North Africa (MENA) region, identifies key challenges to their effective and efficient delivery, and proposes a policy framework for reforming public service provision. This study draws on data collected through surveys administered to public social, employment, and education agencies in selected MENA countries to identify key constraints and options for reforming publicly provided employment programs. Recent political transitions arising from the Arab Spring have contributed to the deterioration of labor market outcomes in the MENA region. In this context, ALMPs could become an important policy lever to address some of the challenges facing labor markets. These include: joblessness, skills mismatches, lack of labor market mobility, large and expanding informal sector, and lack of formal employment networks. The study also provides specific details on the beneficiaries, targeting, and expenditures of ALMPs during this same period.Publication Active Labor Market Programs for Youth : A Framework to Guide Youth Employment Interventions(World Bank, Washington, DC, 2010-11)Youth are three times more likely to be unemployed than adults, even in economies with strong economic growth. This note is a tool to provide policymakers and youth-serving organizations with a framework to better diagnose short- to medium-run constraints facing the stock of unemployed youth and to design evidence based youth employment interventions. The note only addresses youth employment; strategies to affect wages, productivity, underemployment, or job quality are not directly discussed. This note presents youth-oriented Active Labor Market Programs (ALMPs) that conform to one of two criteria. Each intervention either has been shown to have predominately positive impact, as measured by rigorous impact evaluations, or has weaker evidence of impact-rigorous evaluations with mixed evidence of impact or strong positive monitoring data-and is theoretically sound. Cost-effectiveness information is presented when available. The note focuses on programs that are appropriate to address constraints faced by youth from disadvantaged backgrounds.Publication Youth Employment : A Human Development Agenda for the Next Decade(World Bank, Washington, DC, 2013-06)This paper reviews the main challenges facing countries in attempting to improve labor market outcomes among youth, focusing on the issues that became starkly visible during the recent financial crisis. In order to better identify and set up human development interventions, the paper proposes an agenda that focuses on three areas: (1) improving the understanding of the causes and consequences of poor labor market outcomes for youth; (2) continuing to learn from the evaluation of pilots and programs that aim to promote productive employment among young people; and (3) addressing implementation issues which frequently overwhelm the best designs. The paper utilizes research on youth employment to take stock of youth labor market outcomes across regions, focusing on inactivity, unemployment, and employment indicators. A review of what is known about current interventions, including those that appear in the youth employment Inventory database of programs, provides the basis for determining the efficacy of five categories of intervention: (i) skills training (including vocational training, on-the-job-training programs, literacy and numeracy programs, second-chance and equivalency programs, and soft-skills programs); (ii) entrepreneurship promotion (financial assistance, technical assistance, and entrepreneurship training); (iii) subsidized employment (including wage subsidy programs, public works, and public/community service programs); (iv) employment services (including search assistance and access to labor market information, job counseling and placement services, and financial assistance for job search); and (v) reforms to labor market regulation (including anti-discrimination legislation) training programs, wage subsidies. Finally, the paper proposes an agenda for research and policy analysis in the area of human development that is expected to help both deepen the understanding of youth employment issues and improve the selection, design, and implementation of youth employment programs.Publication Linking Education Policy to Labor Market Outcomes(Washington, DC: World Bank, 2008)Education plays a central role in preparing individuals to enter the labor force, as well as equipping them with the skills to engage in lifelong learning experiences. The objective of this study is to review what is known about the role of education in improving labor market outcomes, with a particular focus on policy considerations for developing countries. The report presents findings from current literature on the topic, which offers new ways of looking at the returns to education, together with evidence from four original data analysis and background studies of education and labor issues in Ghana and Pakistan. Country studies on Ghana and Pakistan are used to substantiate findings of the literature and illustrate the heterogeneity of education labor market linkages across regions. These countries were chosen because they are representative of two of the poorest regions of the world and because their inclusion in the analysis complements ongoing World Bank work on education and labor market issues in those countries. This report offers two types of findings: those relevant to the content of educational policies and those relevant to the framework for educational policy making.
Users also downloaded
Showing related downloaded files
Publication Business Ready 2024(Washington, DC: World Bank, 2024-10-03)Business Ready (B-READY) is a new World Bank Group corporate flagship report that evaluates the business and investment climate worldwide. It replaces and improves upon the Doing Business project. B-READY provides a comprehensive data set and description of the factors that strengthen the private sector, not only by advancing the interests of individual firms but also by elevating the interests of workers, consumers, potential new enterprises, and the natural environment. This 2024 report introduces a new analytical framework that benchmarks economies based on three pillars: Regulatory Framework, Public Services, and Operational Efficiency. The analysis centers on 10 topics essential for private sector development that correspond to various stages of the life cycle of a firm. The report also offers insights into three cross-cutting themes that are relevant for modern economies: digital adoption, environmental sustainability, and gender. B-READY draws on a robust data collection process that includes specially tailored expert questionnaires and firm-level surveys. The 2024 report, which covers 50 economies, serves as the first in a series that will expand in geographical coverage and refine its methodology over time, supporting reform advocacy, policy guidance, and further analysis and research.Publication Global Economic Prospects, January 2025(Washington, DC: World Bank, 2025-01-16)Global growth is expected to hold steady at 2.7 percent in 2025-26. However, the global economy appears to be settling at a low growth rate that will be insufficient to foster sustained economic development—with the possibility of further headwinds from heightened policy uncertainty and adverse trade policy shifts, geopolitical tensions, persistent inflation, and climate-related natural disasters. Against this backdrop, emerging market and developing economies are set to enter the second quarter of the twenty-first century with per capita incomes on a trajectory that implies substantially slower catch-up toward advanced-economy living standards than they previously experienced. Without course corrections, most low-income countries are unlikely to graduate to middle-income status by the middle of the century. Policy action at both global and national levels is needed to foster a more favorable external environment, enhance macroeconomic stability, reduce structural constraints, address the effects of climate change, and thus accelerate long-term growth and development.Publication Digital Progress and Trends Report 2023(Washington, DC: World Bank, 2024-03-05)Digitalization is the transformational opportunity of our time. The digital sector has become a powerhouse of innovation, economic growth, and job creation. Value added in the IT services sector grew at 8 percent annually during 2000–22, nearly twice as fast as the global economy. Employment growth in IT services reached 7 percent annually, six times higher than total employment growth. The diffusion and adoption of digital technologies are just as critical as their invention. Digital uptake has accelerated since the COVID-19 pandemic, with 1.5 billion new internet users added from 2018 to 2022. The share of firms investing in digital solutions around the world has more than doubled from 2020 to 2022. Low-income countries, vulnerable populations, and small firms, however, have been falling behind, while transformative digital innovations such as artificial intelligence (AI) have been accelerating in higher-income countries. Although more than 90 percent of the population in high-income countries was online in 2022, only one in four people in low-income countries used the internet, and the speed of their connection was typically only a small fraction of that in wealthier countries. As businesses in technologically advanced countries integrate generative AI into their products and services, less than half of the businesses in many low- and middle-income countries have an internet connection. The growing digital divide is exacerbating the poverty and productivity gaps between richer and poorer economies. The Digital Progress and Trends Report series will track global digitalization progress and highlight policy trends, debates, and implications for low- and middle-income countries. The series adds to the global efforts to study the progress and trends of digitalization in two main ways: · By compiling, curating, and analyzing data from diverse sources to present a comprehensive picture of digitalization in low- and middle-income countries, including in-depth analyses on understudied topics. · By developing insights on policy opportunities, challenges, and debates and reflecting the perspectives of various stakeholders and the World Bank’s operational experiences. This report, the first in the series, aims to inform evidence-based policy making and motivate action among internal and external audiences and stakeholders. The report will bring global attention to high-performing countries that have valuable experience to share as well as to areas where efforts will need to be redoubled.Publication Global Economic Prospects, June 2025(Washington, DC: World Bank, 2025-06-10)The global economy is facing another substantial headwind, emanating largely from an increase in trade tensions and heightened global policy uncertainty. For emerging market and developing economies (EMDEs), the ability to boost job creation and reduce extreme poverty has declined. Key downside risks include a further escalation of trade barriers and continued policy uncertainty. These challenges are exacerbated by subdued foreign direct investment into EMDEs. Global cooperation is needed to restore a more stable international trade environment and scale up support for vulnerable countries grappling with conflict, debt burdens, and climate change. Domestic policy action is also critical to contain inflation risks and strengthen fiscal resilience. To accelerate job creation and long-term growth, structural reforms must focus on raising institutional quality, attracting private investment, and strengthening human capital and labor markets. Countries in fragile and conflict situations face daunting development challenges that will require tailored domestic policy reforms and well-coordinated multilateral support.Publication The Container Port Performance Index 2023(Washington, DC: World Bank, 2024-07-18)The Container Port Performance Index (CPPI) measures the time container ships spend in port, making it an important point of reference for stakeholders in the global economy. These stakeholders include port authorities and operators, national governments, supranational organizations, development agencies, and other public and private players in trade and logistics. The index highlights where vessel time in container ports could be improved. Streamlining these processes would benefit all parties involved, including shipping lines, national governments, and consumers. This fourth edition of the CPPI relies on data from 405 container ports with at least 24 container ship port calls in the calendar year 2023. As in earlier editions of the CPPI, the ranking employs two different methodological approaches: an administrative (technical) approach and a statistical approach (using matrix factorization). Combining these two approaches ensures that the overall ranking of container ports reflects actual port performance as closely as possible while also being statistically robust. The CPPI methodology assesses the sequential steps of a container ship port call. ‘Total port hours’ refers to the total time elapsed from the moment a ship arrives at the port until the vessel leaves the berth after completing its cargo operations. The CPPI uses time as an indicator because time is very important to shipping lines, ports, and the entire logistics chain. However, time, as captured by the CPPI, is not the only way to measure port efficiency, so it does not tell the entire story of a port’s performance. Factors that can influence the time vessels spend in ports can be location-specific and under the port’s control (endogenous) or external and beyond the control of the port (exogenous). The CPPI measures time spent in container ports, strictly based on quantitative data only, which do not reveal the underlying factors or root causes of extended port times. A detailed port-specific diagnostic would be required to assess the contribution of underlying factors to the time a vessel spends in port. A very low ranking or a significant change in ranking may warrant special attention, for which the World Bank generally recommends a detailed diagnostic.