Abstract

This paper focuses on the determinants of the labor market situation of young people in developed countries and the developing world, with a particular emphasis on the role of vocational training and education policies. We highlight the role of demographic factors, economic growth and labor market institutions in explaining young people's transition into work. Subsequently, we assess differences between the setup and functioning of the vocational education and training policies across major world regions as an important driver of differential labor market situation of youth. Based on our analysis, we argue in favor of vocational education and training systems combining work experience and general education and provide some policy recommendations regarding the implementation of education and training systems adapted to a country's economic and institutional context.

Highlights

  • Entering the labor market poses major challenges for young people in many countries

  • Challenges, and capacities to act vary across countries and world region, depending on economic, institutional and societal context

  • Participation in vocational courses for young people working in the informal sector could be increased by setting some incentives to participants and employers, in particular compensating for hours not worked because of training courses

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Summary

Discussion

Any opinions expressed here are those of the author(s) and not those of IZA. Research published in this series may include views on policy, but the institute itself takes no institutional policy positions. The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author

EXECUTIVE SUMMARY
Introduction
Core indicators of unemployment
Explaining youth unemployment
The contribution of general education and vocational training
The contribution of active labor market policy programs
The role of career and educational guidance
Youth unemployment and the role of training: a summary of the findings
Germany and its neighboring countries
Spain and other Mediterranean countries
Anglo-Saxon countries
Transition Countries
The Middle East and North Africa
Sub-Saharan Africa and South Africa
Latin America
South and East Asia
China and East Asia
Maldives
Philippines
Major lessons from the comparison
Findings
Some general needs for action
Policy recommendations for different types of countries
Full Text
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