Youth Employment in Sub-Saharan Africa Youth Employment in Sub-Saharan Africa Deon Filmer and Louise Fox with Karen Brooks, Aparajita Goyal, Taye Mengistae, Patrick Premand, Dena Ringold, Siddharth Sharma, and Sergiy Zorya A copublication of the Agence Française de Développement and the World Bank © 2014 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW, Washington DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org Some rights reserved 1 2 3 4 17 16 15 14 This work is a product of the staff of The World Bank with external contributions. Note that The World Bank and the Agence Française de Développement do not necessarily own each component of the content included in the work. The World Bank and the Agence Française de Développement therefore do not warrant that the use of the content contained in the work will not infringe on the rights of third parties. The risk of claims resulting from such infringe- ment rests solely with you. 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The manuscripts chosen for publication represent the highest quality in each institution and have been selected for their relevance to the development agenda. Working together with a shared sense of mission and interdisciplinary purpose, the two institutions are com- mitted to a common search for new insights and new ways of analyzing the development realities of the Sub-Saharan Africa region. Advisory Committee Members Agence Française de Développement Jean-Yves Grosclaude, Director of Strategy Alain Henry, Director of Research Philippe Cabin, Head of Research Publishing Division World Bank Francisco H. G. Ferreira, Chief Economist, Africa Region Richard Damania, Lead Economist, Africa Region Stephen McGroarty, Executive Editor, Publishing and Knowledge Division Sub-Saharan Africa CAPE MAURITANIA VERDE NIGER MALI SUDAN ERITREA SENEGAL CHAD THE GAMBIA BURKINA FASO GUINEA-BISSAU GUINEA BENIN NIGERIA ETHIOPIA CÔTE GHANA CENTRAL SOUTH SIERRA LEONE D’IVOIRE AFRICAN REPUBLIC SUDAN SOMALIA LIBERIA TOGO CAMEROON EQUATORIAL GUINEA UGANDA KENYA SÃO TOMÉ AND PRÍNCIPE GABON CONGO DEMOCRATIC RWANDA REPUBLIC OF CONGO BURUNDI TANZANIA SEYCHELLES COMOROS ANGOLA MALAWI Mayotte (Fr.) ZAMBIA MADAGASCAR MOZAMBIQUE ZIMBABWE MAURITIUS NAMIBIA BOTSWANA Réunion (Fr.) SWAZILAND LESOTHO SOUTH AFRICA Throughout this report, “Africa” is shorthand for “Sub-Saharan Africa.” In particular instances, “Sub-Saharan Africa” is retained to clarify comparisons across regions or to indicate a specifi c data set. ries Africa’s Infrastructure: A Time for Transformation (2010) edited by Vivien Foster and Cecilia Briceño-Garmendia Gender Disparities in Africa’s Labor Market (2010) edited by Jorge Saba Arbache, Alexandre Kolev, and Ewa Filipiak Challenges for African Agriculture (2010) edited by Jean-Claude Deveze Contemporary Migration to South Africa: A Regional Development Issue (2011) edited by Aurelia Segatti and Loren Landau Light Manufacturing in Africa: Targeted Policies to Enhance Private Investment and Create Jobs (2012) by Hinh T. Dinh, Vincent Palmade, Vandana Chandra, and Frances Cossar Informal Sector in Francophone Africa: Firm Size, Productivity, and Institutions (2012) by Nancy Benjamin and Ahmadou Aly Mbaye Financing Africa’s Cities: The Imperative of Local Investment (2012) by Thierry Paulais Structural Transformation and Rural Change Revisited: Challenges for Late Developing Countries in a Globalizing World (2012) by Bruno Losch, Sandrine Fréguin-Gresh, and Eric Thomas White The Political Economy of Decentralization in Sub-Saharan Africa: A New Implementation Model (2013) edited by Bernard Daffl on and Thierry Madiès Empowering Women: Legal Rights and Economic Opportunities in Africa (2013) by Mary Hallward-Driemeier and Ta z e e n H a s a n Enterprising Women: Expanding Economic Opportunities in Africa (2013) by Mary Hallward-Driemeier Urban Labor Markets in Sub-Saharan Africa (2013) edited by Philippe De Vreyer and François Roubaud Securing Africa’s Land for Shared Prosperity: A Program to Scale Up Reforms and Investments (2013) by Frank F. K. Byamugisha All books in the Africa Development Forum series are available for free at https://openknowledge.worldbank.org/handle/10986/2150 Foreword xix Acknowledgments xxi About the Authors xxiii Acronyms and Abbreviations xxvii Overview Youth Employment in Sub-Saharan Africa 1 Africa’s Large Youth Population 2 Growth, Jobs, and Africa’s Labor Force—Now and in the Future 3 Youth’s Transition to Productive Employment 6 Policy Priorities for Addressing Youth Employment 8 Human Capital: The Fundamental Role of Basic Education 10 Raising the Productivity of Smallholder Farmers 11 Increasing the Productivity of Nonfarm Household Enterprises 15 Improving Competitiveness to Boost Modern Sector Wage Jobs 18 Building an Effective Youth Employment Policy 21 Notes 22 References 22 1 Opportunities and Challenges for Youth Employment in Africa 25 Africa’s Working-Age Population: Very Young and Growing Rapidly 25 Can Africa’s Youth Bring an Economic Advantage? 26 What Is a Job, and Where Do Most Africans Find One? 28 Growth, Jobs, and Africa’s Labor Force—Now and in the Future 30 Framework of This Report 41 Notes 41 References 42 Focus Note 1 Jobs: More Than Just Income 43 The Value of Jobs 43 Jobs and Aspirations 44 ix x Contents Jobs and Development 45 References 47 2 Youth: A Time of Transitions 49 Youth’s Transition from School 50 Youth’s Transition to Work 53 The Parallel Transitions: Choices Infl uencing Health, Family Formation, and Civic Engagement 60 Challenges for Females Transitioning to Work 62 Facilitating Transitions from School, to Work, and across Sectors of Employment 64 Notes 64 References 64 3 Skills for Productive Employment 67 Schooling, Educational Attainment, and Work 68 Building a Foundation: Cognitive, Socioemotional, and Behavioral Skills 75 Building Skills through Post-School Training 89 Government Interventions and the Post-school Training Market 94 Conclusion: A Skills Agenda for Youth 102 Notes 103 References 104 4 Agriculture as a Sector of Opportunity for Young Africans 113 Agriculture: Potential Opportunity, Room to Grow 114 Recognizing the Opportunity in Agriculture for Young People 117 Agricultural Career Paths for the Future 120 Lifting Key Constraints on Capital, Land, and Skills 123 Land Policies That Benefi t the Young 127 Enhancing Skills and Building a Better Educational Foundation 130 Current Agricultural Programs Deliver Too Little, Too Slowly, to Meet the Needs of Africa’s Young People 135 Harnessing Agriculture’s Youth Dividend 137 Notes 137 References 138 Focus Note 2 Safety Nets and Pathways to Productive Employment 142 Short-Term Benefi ts of Safety Net Programs 142 Safety Nets Plus Explicit Productive Components 143 Do Complementary Interventions Open Pathways toward Productive Employment for Youth? 144 Contents xi Safety Nets as Vehicles