Wendy Cunningham

Youth at Risk in Latin America and the Caribbean : Understanding the Causes, Realizing the Potential

Realizing the potential of Latin America and the Caribbeans (LAC) youth is essential not only to their well-being, but also to the long-term welfare of the whole region. Young peoples families, communities, and governments as well as private, nonprofit, and international organizations, have a responsibility to help youth reach their potential. There have been many successes but also important failures. How to build on the successes and correct the failures is the subject of this report. This book has two objectives: to identify the at-risk youth in LAC, and to provide evidence-based guidance to policy makers in LAC countries that will help them to increase the effectiveness and efficiency of their youth investments. The book concludes that governments can be more effective in preventing young people from engaging in risky behavior in the first place and also in assisting those who already are engaged in negative behavior. To support governments in this endeavor, the book provides a set of tools to inform and guide policy makers as they reform and implement programs for at-risk youth.

Youth employment in Sierra Leone : sustainable livelihood opportunities in a post-conflict setting

This study focuses on short- and medium-term solutions. It informs the government about the type of programs and policies that could improve the employability of young people, paying special attention to areas in which productivity can be rapidly improved. The report consists of six chapters. Chapter two profiles young people in Sierra Leone. Chapter three examines young people in the labor market, with a focus on the labor supply side of the equation (that is, the skills young people bring to the labor market). Chapter four turns to employers (the demand side of the labor market) to better understand why they do or do not employ young people. Chapter five reviews skill development programs to enhance employability of young people in Sierra Leone and other countries and presents policy options for improving worker skills (supply side) and employer interest (demand side). Chapter six summarizes the lessons from the analysis and concludes with policy and program recommendations.

Youth employment transitions in Latin America

Using panel data from labor force surveys in Argentina, Brazil, and Mexico, the paper maps out young peoples paths from the classroom to the work place during the 1980s through the early 2000s. By decomposing transition matrices into propensity to move and rate of separation and estimating duration matrices, the authors follow young peoples movements between school and work and between employment sectors to better understand the dynamics of youth employment, including where youth go upon leaving school, how long they spend in each state, and where they go upon leaving various employment states. The main conclusion of the study is that young people across all three countries follow a similar trend over their life cycle: they leave school to spend a short time in the informal sector, move to a formal position for longer spells, and finally become self-employed. The authors find evidence of decreasing segmentation between formal and informal sectors as workers age, a lower propensity for formal sector employees to return to school than workers in the same age cohort who are not in the formal sector, and that entry to self-employment is not subject to income constraints.

Earnings Inequality within and across Gender, Racial, and Ethnic Groups in Four Latin American Countries

Latin American countries are generally characterized as displaying high income and earnings inequality overall along with high inequality by gender, race, and ethnicity. However, the latter phenomenon is not a major contributor to the former phenomenon. Using household survey data from four Latin American countries (Bolivia, Brazil, Guatemala, and Guyana) for which stratification by race or ethnicity is possible, this paper demonstrates (using Theil index decompositions as well as Gini indices, and 90/10 and 50/10 percentile comparisons) that within-group earnings inequality rather than between-group earnings inequality is the main contributor to overall earnings inequality. Simulations in which the relatively disadvantaged gender and/or racial/ethnic group is treated as if it were the relatively advantaged group tend to reduce overall earnings inequality measures only slightly and in some cases have the effect of increasing earnings inequality measures.

Programs and Policies that Promote Positive Youth Development and Prevent Risky Behaviors : An International Perspective

This chapter provides an international perspective on the promotion of positive development and the prevention of risky behavior among youth. We discuss some of the specific challenges that youth face in low- and middle-income countries and identify six key evidence-based policies and programs that aim to promote positive youth development and prevent risky behavior. We also propose a set of practical recommendations for policymakers and other stakeholders on how to develop and implement an effective youth portfolio in the context of limited financial resources.

Developing Social-Emotional Skills for the Labor Market : The PRACTICE Model

Although there is a general agreement in the literature of the importance of social-emotional skills for labor market success, there is little consensus on the specific skills that should be acquired or how and when to teach them. The psychology, economics, policy research, and program implementation literatures all touch on these issues, but they are not sufficiently integrated to provide policy direction. The objective of this paper is to provide a coherent framework and related policies and programs that bridge the psychology, economics, and education literature, specifically that related to skills employers value, non-cognitive skills that predict positive labor market outcomes, and skills targeted by psycho-educational prevention and intervention programs. The paper uses as its base a list of social-emotional skills that employers value, classifies these into eight subgroups (summarized by PRACTICE), then uses the psychology literature -- drawing from the concepts of psycho-social and neuro-biological readiness and age-appropriate contexts -- to map the age and context in which each skill subset is developed. The paper uses examples of successful interventions to illustrate the pedagogical process. The paper concludes that the social-emotional skills employers value can be effectively taught when aligned with the optimal stage for each skill development, middle childhood is the optimal stage for development of PRACTICE skills, and a broad international evidence base on effective program interventions at the right stage can guide policy makers to incorporate social-emotional learning into their school curriculum.

Pending Issues in Protection, Productivity Growth, and Poverty Reduction

This paper selectively synthesizes much of the research on Latin American and Caribbean labor markets in recent years. Several themes emerge that are particularly relevant to ongoing policy dialogues. First, labor legislation matters, but markets may be less segmented than previously thought. The impetus to voluntary informality, which appears to be a substantial fraction of the sector, implies that the design of social safety nets and labor legislation needs to take a more integrated view of the labor market, taking into account the cost-benefit analysis workers and firms make about whether to interact with formal institutions. Second, the impact of labor market institutions on productivity growth has probably been underemphasized. Draconian firing restrictions increase litigation and uncertainty surrounding worker separations, reduce turnover and job creation, and poorly protect workers. But theory and anecdotal evidence also suggest that they, and other related state or union induced rigidities, may have an even greater disincentive effect on technological adoption, which accounts for half of economic growth. Finally, institutions can affect poverty and equity, although the effects seem generally small and channels are not always clear. Overall, the present constellation of labor regulations serves workers and firms poorly and both could benefit from substantial reform.

Employer voices, employer demands, and implications for public skills development policy

Educators believe that they are adequately preparing youth for the labor market while employers lament the lack of skills. A possible source of the mismatch in perceptions is that employers and educators have different understandings of the types of skills valued in the labor market. This paper uses economics and psychology literature to define four skills sets: socio-emotional, higher-order cognitive, basic cognitive, and technical skills. The paper reviews the literature that quantitatively measures employer skill demand, as reported in preference surveys. A sample of 28 studies reveals remarkable consistency across the world in the skills demanded by employers. Although employers value all skill sets, there is a greater demand for socio-emotional and higher-order cognitive skills than for basic cognitive or technical skills. These results are robust across economy size and level of development, sector, export-orientation, and occupations. Employers perceive that the greatest skills gaps are in socio-emotional and technical skills. These findings suggest the need to re-conceptualize education and training systems. Taking into consideration the developmental process to acquire the skills identified by employers, this implies the need to recognize that (a) the job-skills development process necessarily begins at birth and continues throughout the life cycle so skills policy should, as well; (b) schools play a relevant, but limited, role in skills development and the role of parents, mentors, and the work place must be defined and enhanced; and (c) the skills most demanded by employers -- higher-order cognitive and socio-emotional skills -- are largely taught (the former) or refined in secondary school, which argues for a general education until these skills are formed.

Youth well-being in Brazil : an index for cross-regional comparisons

This study constructs three indices to measure how well Brazils young people are surviving their transition to adulthood. Youth development is difficult to quantify because of the multi-dimensionality of youth behavior. Most monitoring use individual indicators in specific sectors, making it difficult to track overall progress. The study adapts to the Brazilian case a methodology developed by Duke University to measure the well-being of U.S. children and youth. It uses readily available data to construct three indices for each Brazilian state based on 36 indicators encompassing the health, behavior, school performance, institutional connectedness, and socioeconomic conditions. The indices conclude that young people in the states of Santa Catarina and the Federal District are doing particularly well and those in Alagoas and Pernambuco are the worst off. While these rankings are expected to continue into the next generation, young people in other states have a brighter (Espiritu Santo) or more dismal (Rio Grande de Sul, Tocatins) future due to underinvestment in todays children. Still others (Rio de Janeiro) are underutilizing their resources so their young citizens are in a worse situation than they could be if the state were to invest more. The hope is that the methodology can be used in Brazil as it has been used in the United States to estimate the indices annually, thus allowing policymakers, young people, and society to track the well-being of youth in each state over time.

The home as factory floor : employment and remuneration of home-based workers

Home-based work, defined as nonprofessionals who perform market work from their homes, is an increasingly recognized form of employment in Latin America. The majority of the research on this segment of the labor force relies on small sample, qualitative data, which find that home-based workers are women, children, and adults with disabilities with low skills who work long hours for low wages. The authors use a large random sample of control groups of non-home-based workers, including men, in their analysis and examine the home-based work sector in Brazil, Ecuador, and Mexico in 1999. Their results show that in all three countries, women are overrepresented among home-based workers, particularly older women, those with low levels of education, and those with children or spouses, unlike men for whom these factors do not matter. Female home-based workers earn 25-60 percent less an hour than do non-home-based working women and they work one-third to one-half as many hours each week. Home-based working men, on the other hand, earn 0-17 percent less than do men who do not work from their homes, and they only work 10 percent fewer hours a week. The wage and work hour gaps for women are largely related to marital status, not the presence of children, suggesting that simply being the primary caregiver in the household, regardless of the actual time constraints (children) is the key factor to differences between home-based working women and those who work outside of their homes.