|
|
11.0 Projects that have been brought to help Promote youth
Employment to the community
11.0.1 India: Training of Rural Youth for Self-Employment (TRYSEM)
TRYSE s a facilitating component of a poverty eradication programme, which aims at providing basic technical and entrepreneurial skills to the rural poor in the age group of 18 to 35 years to enable them to take up self- or wage- employment. At least 40 per cent of the beneficiaries have to be women. Train- ing is imparted both through training institutions and through the non- institutionalised mode, e.g. master craftsmen functioning from their own place of work. Every TRYSEM trainee becomes eligible to avail of assistance for setting up a self-employment enterprise. During the Eighth Plan
USA, young people between the ages of 16 and 25 typically hold 7-8 different jobs . If such voluntary quitting or behaviour or "shopping around" is less cyclically sensitive than job availability, one consequence will be that when job opportuinites become scarce, unemployment will rise more amongst those groups with a higher likelihood of quitting their jobs. Whilst voluntary quits will also tend to fall during a recession, Moser (1986) shows that, in the USA, voluntary quits fall off markedly with age and are less cyclically volatile than "fires" by firms. The implication is that young people are more likely to quit their jobs than adults and will continue to do so during recessions and therefore will be disproportionately affected by recession-induced reductions in new hires.
Although this goes someway towards providing an explanation, there is little doubt that it is demand side considerations which are of more consequence. The opportunity cost to firms of firing young people is lower than for older workers. Being less skilled, they embody lower levels of investment by firms in training and consequently involve a smaller loss to firms making them redundant. Furthermore, young people are less likely to be subject to employment protection legislation. Almost invariably, such legislation requires a qualifying period before it can be invoked and typically compensation for redundancy increases with tenure. Thus, also for this reason, the more recently taken on employees will be cheaper to fire. Obviously, this will disproportionately affect young people.
Also, much research has shown that the first reaction of firms to a recession is to cease hiring before commencing on the more expensive procedure of redundancies. It is evident that young people will comprise a disproportionate segment of job-seekers and thus will be more heavily affected by a freeze in new hires. For example, Pissarides (1986) has demonstrated that, at the aggregate level, increased unemployment in Britain in the late 1970s and 1980s was essentially attributable to a reduction in the outflow from unemployment rather than any variations in the inflow which varied to a much smaller degree . More recently, looking at the uncompleted duration of unemployment, O'Higgins (1995, pp.27-28) has demonstrated that this continues to be true for both older and younger age-groups. Variations in unemployment reflected increasing unemployment duration, and therefore a fall in the outflow rate, rather than a marked increase in new entrants to unemployment . Indeed, for the under-18s, the progressive reduction in unemployment witnessed from 1983 on was accompanied by a sustained increase in the numbers of new entrants to unemployment. In other words, falling unemployment was accompanied by an increase in the inflow rate rather than the reverse.
For all these reasons it is not particularly surprising to find that young people's unemployment rates are higher than for adults and that they are more cyclically sensitive than their older counterparts.
Wages
The arguments related to wages also have, at least superficially, an obvious intuitive appeal. Wages are likely to have a negative impact on youth employment in as much as, the higher are the relative wages of youth with respect to those of adults the more incentives there are to employ adults as opposed to youths. Although intuitively appealing, this argument relies on the assumption that adult workers are perfect, or atAbstract
The large, and perhaps growing, number of unemployed youth is one of the most daunting problems faced by developed and developing countries alike. On average, and almost everywhere, for every one unemployed adult, two young persons find themselves without a job. The social distress caused by this situation is well known. The long-term effects of youth joblessness are equally important. The unemployment spells over a worker's life cycle are related to the ease of transition between school and work. Furthermore, it is disappointing to observe that the unprecedented expansion of investment in youth education in many regions of the world is not being matched by higher employment levels for this population group. This problem has continued to cause many youth around the world untold suffering thus prompting for the concerned authorities to look for a solution.
|
Tags
You must be logged in to add tags.
|
Writer Profile
Bonnie
This user has not written anything in his panorama profile yet.
|
Comments
You must be a TakingITGlobal member to post a comment. Sign up for free or login.
|
|
