Document Abstract

Rising to the youth employment challenge: new evidence on key policy issues

Discusses some of the major global issues in youth labour markets, such as the trend towards non-standard forms of employment, and examines the potential impact of discretionary fiscal expansion as a means to promote youth employment and reduce youth unemployment. Considers the potential for sectoral development policies to promote youth employment and the importance of sound budgetary policy. Presents the results of a meta-analysis of the youth employment effects of minimum wage legislation and the role of interactions between labour market institutions in determining the youth effects of minimum wages. Looks at wage subsidy programmes and at features that may be incorporated in their design to improve their effectiveness. Examines the effectiveness of programmes to promote youth entrepreneurship, suggesting that they should be part of a more general toolkit designed to integrate young people into good-quality employment. Addresses contractual arrangements aimed at facilitating the entry of young people into employment, including work-based training arrangements and apprenticeships. Reports on informal employment and how it may act as a stepping stone to stable formal work. Concludes that both discretionary fiscal policy and wage subsidies are likely to be most effective when the demand for youth labour is weak.


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O’Higgins, Niall
Ref No:
International Labour Organization (ILO)

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