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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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    1. Gong, Xiaodong & Van Soest, Arthur & Villagomez, Elizabeth, 2004. "Mobility in the Urban Labor Market: A Panel Data Analysis for Mexico," Economic Development and Cultural Change, University of Chicago Press, vol. 53(1), pages 1-36, October.
    2. Wendy Cunningham & Maria Laura Sanchez-Puerta & Alice Wuermli, 2010. "Active Labor Market Programs for Youth : A Framework to Guide Youth Employment Interventions," World Bank Other Operational Studies 11690, The World Bank.
    3. Bosch, Mariano & Maloney, William F., 2010. "Comparative analysis of labor market dynamics using Markov processes: An application to informality," Labour Economics, Elsevier, vol. 17(4), pages 621-631, August.
    4. repec:wsi:medjxx:v:02:y:2010:i:01:n:s1793812010000198 is not listed on IDEAS
    5. Blanchflower, David G & Oswald, Andrew J, 1998. "What Makes an Entrepreneur?," Journal of Labor Economics, University of Chicago Press, vol. 16(1), pages 26-60, January.
    6. Glenda Quintini & Sébastien Martin, 2006. "Starting Well or Losing their Way?: The Position of Youth in the Labour Market in OECD Countries," OECD Social, Employment and Migration Working Papers 39, OECD Publishing.
    7. Manuelita Ureta & Carlos Filgueira & Naercio Aquino Menezes-Filho & Suzanne Duryea & Richard Obuchi & Lykke E. Andersen & Fernando Filgueira & Josefina Bruni Celli & Carmen Elisa Flórez & Jairo Núñez , 2003. "Critical Decisions at a Critical Age: Adolescents and Young Adults in Latin America," IDB Publications (Books), Inter-American Development Bank, number 42598 edited by Manuelita Ureta & Alejandra Cox Edwards & Suzanne Duryea, February.
    8. Cunningham, Wendy, 2009. "Unpacking youth unemployment in Latin America," Policy Research Working Paper Series 5022, The World Bank.
    9. Wendy Cunningham & Linda McGinnis & Rodrigo García Verdú & Cornelia Tesliuc & Dorte Verner, 2008. "Youth at Risk in Latin America and the Caribbean : Understanding the Causes, Realizing the Potential," World Bank Publications, The World Bank, number 6483, September.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. repec:eee:labeco:v:45:y:2017:i:c:p:131-142 is not listed on IDEAS
    2. Björn Nilsson, 2017. "The School-to-work transition in developing countries," Working Papers DT/2017/07, DIAL (Développement, Institutions et Mondialisation).
    3. 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.
    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. 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.
    6. 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.
    7. repec:idb:idbbks:427 is not listed on IDEAS
    8. Pieters, Janneke, 2013. "Youth Employment in Developing Countries," IZA Research Reports 58, Institute for the Study of Labor (IZA).
    9. 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.

    More about this item

    Keywords

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

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