Abstract
Cohort Size and Youth Employment Outcomes
Highlights
The relationship between cohort size and youth employment outcomes is of great interest in developing countries
In the Solow growth model, which assumes an exogenous savings rate, a rise in population growth leads to a fall in capital per worker and presumably worse employment outcomes
We first consider the relationship between cohort size and primary activity and school attendance, before turning to sector, status, and the earnings of wage workers
Summary
The relationship between cohort size and youth employment outcomes is of great interest in developing countries. We estimate the correlation between changes in the size of birth cohorts and changes in employment outcomes for workers at different ages, using a newly compiled dataset of 83 lower and middle income countries.. The first consists of several studies that have investigated how cohort size relates to labor market outcomes in developed countries. Countries that were well-governed, like many of the Asian tigers, could have reduced fertility while simultaneously benefiting from sustained growth In this case, our results should if anything overestimate the benefits of reducing cohort size in boosting employment outcomes, for all ages.. The overall correlation of cohort size with primary activity and sector is limited, there are slight indications that adults in smaller cohorts are moderately more likely to work as wage workers in low-income countries. We describe the evolution of cohort size for the same time period
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