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LAC Youth Skills Programs LIGIA MARGARITA BORRERO ZEA Consultant [email protected] Indonesia March 25, 2011

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Page 1: LAC Youth Skills Programs - World Banksiteresources.worldbank.org/INTINDONESIA/Resources/226271... · LAC Youth Skills Programs LIGIA MARGARITA BORRERO ZEA Consultant . ligiamargarita.borrerozea8@gmail.com

LAC Youth Skills Programs

LIGIA MARGARITA BORRERO ZEA Consultant

[email protected] March 25, 2011

Page 2: LAC Youth Skills Programs - World Banksiteresources.worldbank.org/INTINDONESIA/Resources/226271... · LAC Youth Skills Programs LIGIA MARGARITA BORRERO ZEA Consultant . ligiamargarita.borrerozea8@gmail.com

LATIN AMERICA AND THE CARIBBEAN

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Youth Situation in LAC

Out of 104 million of youths: 34% only study,33% only work, 13% study and work and 20%neither study nor work (ni-ni Generation).

More than half of the LAC population is under 24years of age.

Youths between 15 and 24 years of age are themost affected due to lack of access toemployment and future prospects.

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Of the 33% youths who work, only 10% have a full time job, with contract.35.1% have health insurance and 32.3% are enrolled in a pension system.

Many youths earn less than US$ 2 per day.

Growth of structural unemployment as well as large expansion of the informal sector.

Youth Situation in LAC (Cont ...)

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The current education systems are low-quality orare not flexible enough to provide youths with theknowledge and needed skills to respond to therapidly changing labor market.

Youth Situation in LAC (Cont ...)

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“Critical" Groups in LAC

- Young poor are unskilled and inexperienced, withfew prospects for employment and social inclusion. As such, they are disadvantaged or at risk.

- Generation (ni-ni) These youths have lost the confidence in themselves and their interest in participating in society. They are supported by their families, thus reducing households income (and thus investments and spending).

- Usually Poor youths only have access to precarious work. Generally within the informal sector.

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Given this situation, our youths are easy victims of groups outside the law.

Society does not benefit from the investments in education in these youths.

Loss of social capitalPotential risk for the development of these

countries and the loss of one or more generations.

“Critical" Groups in LAC (Cont ...)

Page 8: LAC Youth Skills Programs - World Banksiteresources.worldbank.org/INTINDONESIA/Resources/226271... · LAC Youth Skills Programs LIGIA MARGARITA BORRERO ZEA Consultant . ligiamargarita.borrerozea8@gmail.com

Current Challenge in LAC

- Youths must have the opportunities to get jobs and education in an equitable manner. Many Constitutions in LAC, establish that all youths shall have equal opportunity to education and access to work.

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Some Obstacles Faced by LAC 8 out of 10 jobs created in the last 15 years are

within the informal sector, with its problems such as.

The growing advanced technology that companies require demand higher-level skills and knowledge, and accordingly this excludes many poor youths from participating in the labor market.

Many processes are outsourced to small companies within the informal sector.

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Governments Adopt Active Labor Market Policies to Support Employment and

Education

Intermediation. ( job banks, resume)

Employment Training ( general education, vocational skills, youth programs)

Employment Promotion (private sector, direct job creation programs, direct public employment creation)

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Employment Training Policies

Training courses for employment are primarily gearedtoward workers and are defined at a central level, andvery supply-driven.

Unemployed youth with low levels of education are nottheir main target beneficiaries.

Employment Training has traditionally been important inLAC region. Many countries have a national traininginstitution (ie: SENA in Colombia, INFOTEP in DominicanRepublic)

Since the 1980s, there is pressure on these institutions toreform (ie: Chile), but with very little progress.

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Employment Training Policies ( Cont…)

In the 1980's, the development of a new type of training programs began, in order to improve employability and promote youth insertion into the labor market in LAC.

Pioneer, Chile Joven Program. The model was replicated by Venezuela (1993), Argentina (1994), Paraguay (1994), Peru (1996), Dominican Republic (1999), Colombia (2000), Panama (2002), and Haiti (2005) with the support of the IDB and the ILO.

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In Colombia: Jóvenes en Acción Program

Bogotá D.C Cali

BucaramangaMedellín

Barranquilla

Cartagena

Manizales

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JÓVENES EN ACCIÓN PROGRAM

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Dominican Republic: Juventud y Empleo Program

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Youth Model Programs in LAC

General objectiveTo improve the employability of youths of

limited income, through short-term jobtraining and behavioral skills development(i.e. Life Plan) provided by competitivelyselected training providers, followed byformal work experience in legallyestablished companies, in a job for whichthey were trained.

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Youth Model Programs in LAC. (Cont ...)

Labor Training Courses, from 4.5 months to 6 months.

Training stage (250 to 350 hours): General Education

regarding work and specific job training

.

Work practice stage at companies (240 to 480 hours).

In Colombia and D. R., behavioral/ life skills training was incorporated throughout the whole program

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Youth Model Programs in LAC: Life Plan ( Cont…)

Program’s component throughout the whole program that was focus in: i) building a positive vision of participants capacities, and ii) improving participant’s self esteem ( from personal and work perspectives).

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Colombia Jóvenes en Acción Program.

Dominican Republic Juventud y EmpleoProgram. Dates 2001 to date. Focused on youths aged

16 to 26 years. Urban Program was

conducted in all the cities.

The training providers (Icap) proposed appropriate training courses upon demand.

From 2000 to 2006Focused on poor youths

(Sisben 1 and 2) aged 18 to 25 years

Urban, implemented in the 7 largest cities.

The selection of training providers was carry out competitively, through public calls, where the (ECAPS) submit offers that were evaluated by the program.

Youth Model Programs in LAC. (Cont ...)

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Colombia Jóvenes en Acción Program

Subsidy to beneficiaries( for snacks and transportation between US$2.50 and US$3.50 per day)

Liability insurance and accidents.

Entities of the training courses, were previously evaluated and ranked on a National Register by the program.

Tools of monitoring, and evaluation were designed by the program in the central level.

Dominican Republic Juventud y EmpleoProgram. Subsidy of beneficiaries of

about US$2 per day. Liability insurance and

accidents. The National Institute of

Technical and Vocational Training (INFOTEP) assumed the role of overseeing the training activities, evaluate the technical proposals of the training courses and faculty of the different ICAP's.

Youth Model Programs in LAC. (Cont ...)

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Country/ ProgramName

Total Beneficiaries Evaluation Period Youth Unemployment Internal Gross Product Growth

ArgentinaProyecto Joven1994 - 2001

130,000 1995, 1996, 1998 1995: 32%15 - 24 1996: 31%1998: 24%

1995: -4.6%1996: 4.4%1998: 3.9%

ChileChile Joven1991 - 2001

164,000 1997 15 – 19 19.5%20 – 24 13.4%

6.7%

ColombiaJóvenes en Acción2002 - 2005

80,000 2005 12 – 1726.4%18 – 2427.7%

5.7%

República DominicanaJuventud y Empleo1999 - to date

30,000 (up to 2006) 2004 10 – 24 33% 1.3%

MéxicoProbeca1984 – to date

A round 5 millionsBetween 1984 -2000

1999 - 2004 2.2% - 3.8%* 1999: 3.8%2000: 6.6%2001: 0%2002: 0.8%2003: 1.4%2004: 4%

PanamáProCaJoven2002 – to date

11,400 2005 15 – 24 0.263 7.2%

PerúPROJoven1996- to date

160,000 (34,000 between 1996 y 2003 ,evaluation sample)

1996 - 2003 14 – 24 14.30%(range 12.8 - 15.8)

1996: 2.5% 1997: 6.9%1998 - 2001: 0.85% (Average)2002 - 2004: 4.7% (average)

Data used for impact assessments

Source: Ibarran and Rosas (2009)

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Country Evaluation Method Comparison Group Baseline / pre-programmed data

Dynamics/employabilityassessment

Articles/ papers

Dominican Republic Experimental Ex -ante definition per randomization

Yes 10 - 14 months and 22 - 24

Card et al.(2006)

Colombia Experimental Ex -ante definition per randomization

Yes 19 - 21 months Atanasio etal. (2007)

Panama Natural Experiment Ex –post definition of the eligible applicants excluded by the natural experiment.

Has no base line pre-program data derive from retrospective questions in the follow up.

9 - 20 monthsIbarrán yRosas Shady(2007)

Peru quasi-Experimental

Ex- ante definition of eligible non applicants

Yes 6, 12, 18 monthsDíaz yJaramillo(2006)

Chile quasi-experimental

Ex- post definition of eligible non applicants

No 12 monthsAedo yPizarro(2004)

Argentina quasi-experimental

Per register applicants that didn’t study the course.

Yes 11 y 19 monthsen el 2° y 3rdcall, 12 in the 5th call.

Alzua yBrassolio(2006)

Mexico quasi-experimental

Define with similar persons measured trough a labor market survey.

No, baseline was reconstructed from ex-post data.

3 and 6 months. Delajara etal. (2006)

Methods used for Impact Assessments

Source: Ibarran and Rosas (2009)

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Main results: Beneficiaries, as Compared to a Random Control Group

Jóvenes en Acción Colombia

Employment Rate: increased 5% for women, none for men.

Formality: increased 6-7% for women and 5-9% for men.

Wages: Increased 22% for women and 10% for men.

Juventud y EmpleoDominican Republic

Employment Rate: No increase. Higher (5-6%), but not significant, in the eastern cities & Santo Domingo.

Formality: 9% higher health-insurance for men (43% vs34%).

Wages: increased 17%(marginally significant); higher for males under 19.

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Qualitative results In both programs, the transversal Life Project,

succeeded in strengthening social and civic skills inthese youths and transform them into better humanbeings.

To select of training providers, interestedinstitutions/NGOs submitted proposal that wereevaluated by the program.

The potential training providers were required to includein their proposals written commitments (MOU) from oneor more companies to offer an internship (between 2 -3months) for all the trainees of the program.

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The Colombian Youth Program’s “Life Project” component led to noticeable differences in behavior management, resulting in better relationships with peers, family, employers, and the community.

The ECAP developed various strategies to minimize drop-out, which also motivated many youths to continue studying, even on higher education campuses.

The monitoring and tracking scheme adopted, allowed both programs to take preventive actions in different areas.

Qualitative results ( Cont…)

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Additional subsidies for women with children under seven years of age was decisive. This sector of the Colombian population is at a huge disadvantage in relation to employment due to childcare needs.

In both countries, the training offered improved the entrepreneurs’ image of poor and vulnerable youths.

The main premise of the work teams in both countries was the WIN-WIN concept.

In both countries the supply of non-traditional job training service was strengthened, these new institutions can be incorporated into the public institutions in this field.

Qualitative results ( Cont…)

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Some conclusions All LAC countries should require their Ministries

of Education and Work to collaborate to support unemployed youth; this is a structural problem, rather than a short-term crisis.

The evaluations of youth programs in LAC have shown that the effects of these programs on employment screening and job training varies by age, gender and region.

In general, in this region women and younger people have higher employment rates than other groups.

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Some Conclusions (Cont ...)

Trainees are more likely to get jobs of quality. Important result in a region that is characterized by the low quality of jobs.

The relatively small investments made with these programs cannot be expected to have large returns.

In general they are cost-effective and do help to increase employability of participants.

These programs have to be part of a more comprehensive labor market strategy and thus complemented by other types of programs, inside the public policy.

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Learned lessons

To consider various alternative mechanisms for theactual participation of the private sector, as well as toinclude mechanisms that will guarantee that the trainingcourses are geared to the needs of the labor market.

Companies, Ecap and youth pointed out that the changein participant’s life was one of the most importantbenefits of the program (according to the program’simpact evaluation). This change was related to theparticipant’s life plan involving areas such as: selfesteem, conflict resolution, work behavior,communication skills, teamwork skills, sexuality amongothers.

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Learned lessons Cont…)

Indirect effect: As a result of the program, youth and theirfamilies valued education more and devoted moreresources to additional educational programs forthemselves, and /or their families.

These programs should be part of a comprehensiveemployment system (ie be part of the NationalEmployment Service) and be complementary to otherprograms.

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What We Still Need to Learn Greater emphasis on the design of: Competence-focused

training? How can we validate previous competitionsachieved earlier by youths? How can we explore betterand more effective procedures to link with the labormarket? How to win the real commitment of the privatesector in order to guarantee the relevance and generationof proper employment? What type of information mustthe Life Project, include?

Which are the circumstances that are required to makethese programs work best - the characteristics ofbeneficiaries? training providers? the type of businesseswhere internships may be performed? Others?

Learning to use a systematic impact assessment tools andresults to design more effective and efficient programs

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What to do to increase the coverage of theseprograms?

What to do to ensure their sustainability? Should the interventions provide long

courses, rather than with short courses? Which monitoring processes should be

performed? and how we will know if theintervention has been cost-effective?

What We Still Need to Learn (Cont…)