Adolescents and Young Adults in Latin America, Critical Decisions at a Critical Age: Young Adult Labor Market Experience
This study explores and analyzes the labor market experience of young adults in 18 Latin American countries. For men, the period of young adulthood (18-25 years of age) was found to be one of smooth convergence towards patterns associated with full adulthood. Females show more complex and less clear-cut trajectories, which seem to be affected by entrance into motherhood. Educational attainment shapes the labor market experience of young adults, regardless of gender: the more educated postpone entry into the market, and more educated women display higher participation rates as they reach late young adulthood. Also, during young adulthood, the more educated display higher unemployment rates, possibly because they are newer in the market, but their rate of participation in the informal sector of the economy is lower. Female labor market experience was found to be affected by motherhood. In many countries women with lower levels of education leave the labor market during young adulthood, while women with higher levels of education postpone such exits and are also less likely to leave. Finally, young Latin American adults with college education were found to experience rapid labor market absorption, featuring swift entry into the formal sector, high participation rates and low and rapidly decreasing unemployment rates. Earnings equations show that education, experience and gender have significant and positive effects on the earnings of young adults. In general, returns from education increase with age and educational level, with the sharpest marginal change occurring in early young adulthood. Return for education and experience of young adults tend to be close to those obtained by prime age adults, although in the case of experience the returns obtained by young adults tend to be larger. In general, formal education has a consistently larger effect than experience. Although the previous findings hold for young adults in almost all countries included in the study, it is important to note that the individual countries results show large variation in the levels of all coefficients (education, experience and gender) and among age groups.
|Date of creation:||Aug 2002|
|Contact details of provider:|| Postal: 1300 New York Avenue, NW, Washington, DC 20577|
Web page: http://www.iadb.org/res
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Lam, David & Schoeni, Robert F, 1993.
"Effects of Family Background on Earnings and Returns to Schooling: Evidence from Brazil,"
Journal of Political Economy,
University of Chicago Press, vol. 101(4), pages 710-740, August.
- Lam. D. & Schoeni, R.F., 1996. "Effects on Family Background on Earnings and Returns to Schooling: Evidence from Brazil," Papers 96-13, RAND - Reprint Series.
- Richard B. Freeman & David A. Wise, 1982. "The Youth Labor Market Problem: Its Nature Causes and Consequences," NBER Chapters,in: The Youth Labor Market Problem: Its Nature, Causes, and Consequences, pages 1-16 National Bureau of Economic Research, Inc.
- Richard B. Freeman & David A. Wise, 1982. "The Youth Labor Market Problem: Its Nature, Causes, and Consequences," NBER Books, National Bureau of Economic Research, Inc, number free82-1, June.
- Kiefer, Nicholas M, 1988. "Economic Duration Data and Hazard Functions," Journal of Economic Literature, American Economic Association, vol. 26(2), pages 646-679, June.
- Miller, Paul W, 1989. "Low-Wage Youth Employment: A Permanent or Transitory State?," The Economic Record, The Economic Society of Australia, vol. 65(189), pages 126-135, June.
- Mazumdar, Dipak, 1976. "The urban informal sector," World Development, Elsevier, vol. 4(8), pages 655-679, August.
- John L. Newman & Paul J. Gertler, 1994. "Family Productivity, Labor Supply, and Welfare in a Low Income Country," Journal of Human Resources, University of Wisconsin Press, vol. 29(4), pages 989-1026.
- Newman, J.L. & Gertler, P.J., 1995. "Family Productivity, Labor Supply, and Welfare in a Low Income Country," Papers 95-05, RAND - Reprint Series.
- Richard B. Freeman, 1979. "The Effect of Demographic Factors on Age-Earnings Profiles," Journal of Human Resources, University of Wisconsin Press, vol. 14(3), pages 289-318.
- Richard B. Freeman, 1979. "The Effect of Demographic Factors on Age-Earnings Profiles," NBER Working Papers 0316, National Bureau of Economic Research, Inc.
- James J. Heckman & V. Joseph Hotz, 1986. "An Investigation of the Labor Market Earnings of Panamanian Males Evaluating the Sources of Inequality," Journal of Human Resources, University of Wisconsin Press, vol. 21(4), pages 507-542.
- Macunovich, Diane J, 1998. "Relative Cohort Size and Inequality in the United States," American Economic Review, American Economic Association, vol. 88(2), pages 259-264, May.
- Behrman, Jere R & Wolfe, Barbara L, 1984. "The Socioeconomic Impact of Schooling in a Developing Country," The Review of Economics and Statistics, MIT Press, vol. 66(2), pages 296-303, May.
- Rees, Albert, 1986. "An Essay on Youth Joblessness," Journal of Economic Literature, American Economic Association, vol. 24(2), pages 613-628, June.
- Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-442, June.
- Tenjo, Jaime, 1990. "Opportunities, Aspirations, and Urban Unemployment of Youth: The Case of Colombia," Economic Development and Cultural Change, University of Chicago Press, vol. 38(4), pages 733-761, July.
- Psacharopoulos, George & Alam, Asad, 1991. "Earnings and education in Venezuela: An update from the 1987 household survey," Economics of Education Review, Elsevier, vol. 10(1), pages 29-36, March.
- Behrman, Jere R & Taubman, Paul, 1986. "Birth Order, Schooling, and Earnings," Journal of Labor Economics, University of Chicago Press, vol. 4(3), pages 121-145, July.
- Sanders Korenman & David Neumark, 2000. "Cohort Crowding and Youth Labor Markets (A Cross-National Analysis)," NBER Chapters,in: Youth Employment and Joblessness in Advanced Countries, pages 57-106 National Bureau of Economic Research, Inc.
- Sanders Korenman & David Neumark, 1997. "Cohort Crowding and Youth Labor Markets: A Cross-National Analysis," NBER Working Papers 6031, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:idb:wpaper:3161. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Monica Bazan)
If references are entirely missing, you can add them using this form.