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Youth employment transitions in Latin America

Author

Listed:
  • Cunningham, Wendy
  • Salvagno, Javier Bustos
Abstract
Using panel data from labor force surveys in Argentina, Brazil, and Mexico, the paper maps out young people's 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 people's 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.

Suggested Citation

  • Cunningham, Wendy & Salvagno, Javier Bustos, 2011. "Youth employment transitions in Latin America," Policy Research Working Paper Series 5521, The World Bank.
    • Handle: RePEc:wbk:wbrwps:5521
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    References listed on IDEAS

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    Cited by:

    1. Calero, Carla & Gonzalez Diez, Veronica & Soares, Yuri S.D. & Kluve, Jochen & Corseuil, Carlos Henrique, 2017. "Can arts-based interventions enhance labor market outcomes among youth? Evidence from a randomized trial in Rio de Janeiro," Labour Economics, Elsevier, vol. 45(C), pages 131-142.
    2. Corseuil, Carlos Henrique & Foguel, Miguel N. & Gonzaga, Gustavo, 2019. "Apprenticeship as a stepping stone to better jobs: Evidence from Brazilian matched employer-employee data," Labour Economics, Elsevier, vol. 57(C), pages 177-194.
    3. Björn Nilsson, 2019. "The School-to-Work Transition in Developing Countries," Journal of Development Studies, Taylor & Francis Journals, vol. 55(5), pages 745-764, May.
    4. Marina Bassi & Matías Busso & Sergio Urzúa & Jaime Vargas, 2012. "Disconnected: Skills, Education, and Employment in Latin America," IDB Publications (Books), Inter-American Development Bank, number 79504, February.
    5. Safojan, Romina, 2019. "The Effect of Exports on Labor Informality : Evidence from Argentina," Discussion Paper 2019-003, Tilburg University, Center for Economic Research.
    6. Busso, Matías & Bassi, Marina & Urzúa, Sergio & Vargas, Jaime, 2012. "Disconnected: Skills, Education, and Employment in Latin America," IDB Publications (Books), Inter-American Development Bank, number 427, November.
    7. repec:idb:brikps:427 is not listed on IDEAS
    8. Pieters, Janneke, 2013. "Youth Employment in Developing Countries," IZA Research Reports 58, Institute of Labor Economics (IZA).
    9. John Bennett & Matthew D. Rablen, 2015. "Self-employment, wage employment, and informality in a developing economy," Oxford Economic Papers, Oxford University Press, vol. 67(2), pages 227-244.
    10. International Programme on the Elimination of Chil (IPEC), 2015. "World Report on Child Labour 2015: Paving the Way to Decent Work for Young People," Working Papers id:6964, eSocialSciences.
    11. Anousheh Alamir & Tillmann Heidelk, 2020. "Natural Disasters and Education," Working Papers ECARES 2020-05, ULB -- Universite Libre de Bruxelles.
    12. Dyah S. Pritadrajati & Anggita C. M. Kusuma & Sweta C. Saxena, 2020. "A Non-Healing Wound: Lasting Consequences Of Unemployment And Informal Self-Employment: An Empirical Evidence From Indonesia," Working Papers WP/09/2020, Bank Indonesia.
    13. Baron,Juan & Popova,Anna & Sanchez Diaz,Angelica Maria, 2016. "Following Mexican youth : a short-run study of time use decisions," Policy Research Working Paper Series 7534, The World Bank.
    14. Székely,Miguel & Karver,Jonathan George, 2015. "Youth out of school and out of work in Latin America : a cohort approach," Policy Research Working Paper Series 7421, The World Bank.
    15. Enrique Alaniz & Alma Espino & T.H. Gindling, 2019. "Self-employment and labour market dynamics of men and women in El Salvador and Nicaragua," WIDER Working Paper Series wp-2019-97, World Institute for Development Economic Research (UNU-WIDER).
    16. Safojan, Romina, 2019. "The Effect of Exports on Labor Informality : Evidence from Argentina," Other publications TiSEM de04345d-1e8f-4b40-afa2-0, Tilburg University, School of Economics and Management.

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    Keywords

    Labor Markets; Youth and Governance; Adolescent Health; Tertiary Education; Labor Policies;
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