Kelly Bird Youth Transition PESO Congress by 7oB68rW


									        12th National PESO Congress

           October 10-13. 2012
      Baguio Country Club, Baguio City

 Helping Filipino Youth to a Good Start :

Design of a youth employment facilitation
                  Kelly Bird
              Principal Economist
            Asian Development Bank
    Overview of Presentation

   Situation of youth in the Philippine labor market
    – some stylized facts
   Evidence on the youth transition from school-to-
   Lessons learned from international experience
    with youth employment programs
   MyFirstJob Project Design Features

(3) Unemployment in the Philippines is relatively

      2007               2008             2009             2010

             Indonesia     Philippines   Malaysia   Thailand
             Brazil        Mexico        Turkey
                       (5) Shift in the demand for labor in the
                                                   (percentage change in share of total
                                                       employment, 2001 to 2008)
% point change in share of total employment





                                                   Information   Sales/service   Production and      Farm and
                                                      related                    trades related   elementary skills


    Youth School to Work

• The better the links between school and the
  labor market, the faster the transition from
  school to work for young people
    2009ADB household survey in Manila and Cebu

       500 households and over 1500 individuals (15 to 65
       Construct transition indicators of young persons
        experience from school to work
          Median time to find a job
          Time path of this transition
          How fast is this transition
          Factors that influence this transition
          Where do young find jobs
          Ease of mobility between formal and informal
    Youth School to Work
  Transition – Main findings

• The school to work transition is
  characterized by a lot of uncertainty for
  young Filipinos
• The transition to work is particularly
  slow for those with high school
  qualifications or less
• And for young females from lower
  socio-economic groups
Youth School to Work Transition –
    Median time to find a job
   All youth – 2 years to find any job and 3 years to
    find a wage job
   High school or less – 3 years to find any job and 4
    years to find a wage job
   At least some college education – 1 year to find
    any job and 2 years to find a wage job
   OECD median is 1.1 years to find a wage job,
    with Australia, US, Finland with less than 1 year
    and Italy, Greece and Spain recording 2.3 years
    or more
   Youth School to Work Transition
            – Time Path
Youth Employment Rates 1, 5 and 8 years since leaving school






             1yr                              5yrs                            8yrs
                         Number of years after leaving initial education

                   All youth       High school graduates           College graduates

    Factors that influence the
    school to work transition
• Education gap – statistical analysis shows that high school
  graduates and HS undergraduates have a slower transition from
  school to work compared to college graduates

• Age gap – teenagers have a more difficult time integrating in
  the labor market compared to youth

• Gender gap – females have a moderately more difficult time
  finding a first job

• Economic gap - family background also influences the transition
  with young persons from lower socio-economic groups
  experiencing longer transition from school to work
Where do young persons find jobs?

 Most (70%) college graduates find wage employment

 About half of young persons with high school education
  find wage employment

 Teenagers (15 to 19 y/o) enter unpaid family work or
  employment in private households

 Young women with high school education or less are
  more likely to enter these precarious forms of

Youth School to Work Transition
– Youth mobility
 The young person’s first job matters in influencing future

    If your first job is in the formal sector, then you have a
     50% chance of finding your next job in the formal

    If you first job is in self employment, then you have a
     70% chance of staying in self employment

    Temporary wage contracts are a steeping stone in to
     formal employment for many young persons
  Helping Young Filipinos
  Get a Good Start in the
       Labor Market

• High school graduates or drop outs
• Lower socio-economic groups
• Young females
   Examples of Youth Employment
       Facilitation Programs
• Job search assistance programs
   – Public employment offices
   – Outsourced to private employment offices

• Training programs for young persons having difficulty
  integrating into the labor market
   – Provisioned through training providers

• Wage subsidies for employing young persons at entry
  level positions

• Public job creation schemes
    Lessons Learned from
   International Experience
• Monitoring and evaluation of programs is
  necessary to allow for adjustments to

  – Programs should be assessed on their net benefits
    of the program
     • Benefits = higher employment rates and higher incomes
       of program participants compared non-participants
     • Costs = admin costs of programs and risks of
       employment displacement
    Lessons Learned from
   International Experience
• Programs with a mix of strategies tend to
  perform better than programs with a main

  – Programs that include job search assistance,
    counseling, vocational training and wage subsidies
    tend to perform better in terms of employment
    rates and higher incomes over the medium term

  – Example: Joven program in Latin America
  –          JobStart in UK
    Lessons Learned from
   International Experience
• Programs with well defined target group
  tend to do better than general targeting

  – High school graduates or drop outs, socio-
    economic disadvantaged groups etc
    Lessons Learned from
   International Experience
• Programs with activation strategies tend
  to do better
  – Encourage young persons to job search
    early in the unemployment spell
  – Active monitoring of job search activities
    and linked to benefits
    Lessons Learned from
   International Experience
• Readiness of public employment offices
  – Good governance structure
  – Well trained staff
  – Well resourced
       Proposed MyFirstJob Pilot Project


   Collaboration between ADB and DOLE
   MyFirstJob draws on successful youth employment
    programs in Latin America (i.e., Joven program in
    Chile), Canada, UK, and several European countries.
   MyFirstJob is at the design stage and we aim to pilot
    in 2013
   Executing agency is Department of labor and
   Implemented through selected PESOs
   Funded through a grant from Canada International
    Development Agency 26
                 Main features
• Counseling services provided to participants in the
• Grants for vocational education (4 weeks and 6
• Grants/wage subsidies for job internships with public
  and private sector employers (up to 12 months)
• M&E framework – LM performance of the 1,500
  beneficiaries and a similar sized control group will be
   – Results will inform GOP on a larger pilot.

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