Improving Youth Labor Market Outcomes in Emerging Market and Developing Economies by JaeBin Ahn, Zidong An, John Bluedorn, Gabriele Ciminelli, Zsóka Kóczán, Davide Malacrino, Daniela Muhaj, and Patricia Neidlinger published by IMF (1/2019)
“Economic development and growth depend on a country’s young people. With most of their
working life ahead of them they make up about a third of the working-age population in the typical emerging market and developing economy. But the youth in these economies face a daunting labor market—about 20 percent of them are neither employed, in school, nor in training (the youth inactivity rate). This is double the share in the average advanced economy. Were nothing else to change, bringing youth inactivity in these economies down to what it is in advanced economies and getting those inactive young people into new jobs would have a striking effect. The working-age employment rate in the average emerging market and developing economy would rise more than 3 percentage points, and real output would get a 5 percent boost.
A two-pronged strategy focused on better learning opportunities and improved job prospects for young people is needed. Secondary and postsecondary schooling has doubled over the past 25 years in the average emerging market and developing economy, which is impressive. But it will take further improvements in education and learning opportunities to close the gap with advanced economies, respond to technology-driven changes in the nature of work, and cope with aging populations. At the same time, young people who are not in school need help so they can find their place in the labor market. This discussion note draws on new analyses that use macro- and microeconomic data to look at how broad structural policies, including labor and product Market reforms, can address challenges in the youth labor market…”
