Growing Up Global The Changing Transitions to Adulthood in Developing Countries (2005) / Chapter Skim
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PART III Transition to Adult Roles
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265 5 The Transition to Work INTRODUCTION One of the most important transitions young people make as they grow older is the transition from being dependent on the economic support of their parents or other adults to being economically productive in their own right with the ability to support themselves and others. This productivity can take many forms, for example, working on the family farm, caring for children at home, working for wages in a factory, or running an independent business.
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266 GROWING UP GLOBAL ing countries experiencing economic growth, low-cost child labor still can give producers a competitive edge. The heightened concern about child labor in developing countries reflects these two contradictory realities.
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THE TRANSITION TO WORK 267 disposition of their family's financial resources as they age.2 Furthermore, rising rates of female household headship around the world suggest that women who have the ability to generate income through their work will be better prepared to face future uncertainties.3 Thus, our definition of a successful work transition for young women today has to include, as it does for young men, the opportunity or potential to earn cash. Probably the most dramatic social transformations that have occurred in developed countries over the last 30 years have been the growing labor force participation of women, accompanied by a rising percentage of women working outside their homes or farms for cash -- first young unmarried women, then older married women, and most recently young mothers in the labor force -- and the narrowing gap between men's and women's pay.4 These changes permit young women greater agency in all aspects of their lives both over the course of the transition to adulthood and beyond (Blau, 1997; Goldin, 1990)
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268 GROWING UP GLOBAL world of work in the developed world over the last 30 years suggests a further prerequisite for successful work transitions -- the opportunity to earn cash in the labor force before marriage -- a possibility that has always been available to men. Due to changing family circumstances, rising educational attainment, greater mobility, and rapid economic changes, one can confidently predict that the transition to work in developing countries today will be different from that in the past and is increasingly likely to be multistaged.
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THE TRANSITION TO WORK 269 The chapter focuses primarily on formal or informal work in the labor market, the kind of work that is typically measured in labor market surveys.5 This is in part because the data are more complete for labor market work than they are for noneconomic household work. But more importantly, it is because of the particular importance we have attached to paid work, which represents a growing share of labor market work everywhere, in our definition of successful work transitions.
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270 GROWING UP GLOBAL third group is those who are neither employed nor unemployed. This group is considered out of the labor force or "not economically active." However, many young people who are defined as out of the labor force or not economically active are actually working in areas not well covered by labor force surveys and censuses.
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THE TRANSITION TO WORK 271 (a) Boys 35 30 25 20 15 10 5 0 W e e k l y H o u r s 11 12 13 14 15 16 17 18 Age Studying Household chores Labor force work 11 12 13 14 15 16 17 18 Age 35 30 25 20 15 10 5 0 W e e k l y H o u r s (b)
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272 GROWING UP GLOBAL implications for time use among young people. A recent comparative analysis of time use data for young people ages 15-19 from an eclectic group of developing countries, including Kenya, India, Nicaragua, Pakistan, and South Africa, allows comparisons of time use between students and nonstudents (Ritchie, Lloyd, and Grant, 2004)
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THE TRANSITION TO WORK 273 nomic household work than economic activities when they are enrolled. Female students, however, still do more noneconomic household work than male adolescents who are not enrolled in school.
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274 Sc ho ol ti m e - U RB AN 0123456789 1 0 1 1 P a k i s t a n S o u t h A f r i c a I n d i a K e n y a N i c a r a g u a MeanHoursperDay M a l e s t u d e n t F e m a l e s t u d e n t Sc ho ol ti m e - R UR AL 0123456789 1 0 1 1 P a k i s t a n S o u t h A f r i c a I n d i a K e n y a N i c a r a g u a MeanHoursperDay M a l e s t u d e n t F e m a l e s t u d e n t
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275 W or k tim e - U RB AN 0123456789 1 0 1 1 P a k i s t a n S o u t h A f r i c a I n d i a K e n y a N i c a r a g u a MeanHoursperDay M a l e s t u d e n t F e m a l e s t u d e n t M a l e n o n s t u d e n t F e m a l e n o n s t u d e n t W or k tim e - R UR AL 0123456789 1 0 1 1 P a k i s t a n S o u t h A f r i c a I n d i a K e n y a N i c a r a g u a MeanHoursperDay M a l e s t u d e n t F e m a l e s t u d e n t M a l e n o n s t u d e n t F e m a l e n o n s t u d e n t FI G U R E 5 -2 M ea n ho ur s sp en t on s ch oo l w or k an d to ta l w or k (a ge s 15 -1 9)
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276 N on ec on om ic h ou se ho ld w or k - U RB AN 0123456789 1 0 1 1 P a k i s t a n S o u t h I n d i a K e n y a N i c a r a g u a M a l e s t u d e n t F e m a l e s t u d e n t M a l e n o n s t u d e n t F e m a l e n o n s t u d e n t N on ec on om ic h ou se ho ld w or k - R UR AL 0123456789 1 0 1 1 P a k i s t a n S o u t h A f r i c a A f r i c a I n d i a K e n y a N i c a r a g u a MeanHoursperDay MeanHoursperDay M a l e s t u d e n t F e m a l e s t u d e n t M a l e n o n s t u d e n t F e m a l e n o n s t u d e n t
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277 La bo r m ar ke t w or k - U RB AN 0123456789 1 0 1 1 P a k i s t a n S o u t h A f r i c a I n d i a K e n y a N i c a r a g u a MeanHoursperDay M a l e s t u d e n t F e m a l e s t u d e n t M a l e n o n s t u d e n t F e m a l e n o n s t u d e n t La bo r m ar ke t w or k - R UR AL 0123456789 1 0 1 1 P a k i s t a n S o u t h A f r i c a I n d i a K e n y a N i c a r a g u a MeanHoursperDay M a l e s t u d e n t F e m a l e s t u d e n t M a l e n o n s t u d e n t F e m a l e n o n s t u d e n t FI G U R E 5 -3 T ot al t im e sp en t in n on ec on om ic h ou se ho ld w or k an d la bo r m ar ke t w or k (a ge s 15 -1 9)
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278 GROWING UP GLOBAL Tables 5-1 and 5-2 summarize trends in labor force participation rates for 15-19-year-olds and 20-24-year-olds, respectively, by five-year age groups over the last 20 years for all countries for which we could compile, at a minimum, data for the most recent time period (1995-present) and at least one five-year period in the recent past (1980-1984 or 1985-1989)
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THE TRANSITION TO WORK 279 with some ups and downs. Female participation rates, which were at considerably lower levels than those of men in this age group in the early 1980s, have tended to increase over time.
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280 T A B L E 5 -1 T re nd s in L ab or F or ce P ar ti ci pa ti on R at es ( A ge s 15 -1 9)
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281 C ar ib be an /C en tr al A m er ic a C os ta R ic a 61 .1 61 .8 56 .6 53 .9 23 .7 26 .0 26 .3 24 .5 E l Sa lv ad or 60 .9 n.
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282 T A B L E 5 -2 T re nd s in L ab or F or ce P ar ti ci pa ti on R at es ( A ge s 20 -2 4)
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283 C ar ib be an /C en tr al A m er ic a C os ta R ic a 82 .3 87 .7 88 .0 86 .0 27 .7 41 .1 43 .8 47 .9 E l Sa lv ad or 86 .7 n.
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284 T A B L E 5 -3 T re nd s in F em al e/ M al e R at io i n Pa rt ic ip at io n R at es , Se le ct ed D ev el op in g C ou nt ri es A ge s 15 -1 9 A ge s 20 -2 4 R eg io n an d 19 80 19 85 19 90 19 80 19 85 19 90 C ou nt ry 19 84 19 89 19 94 19 95 + 19 84 19 89 19 94 19 95 + M id dl e E as t E gy pt 0.
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285 C ar ib be an /C en tr al A m er ic a C os ta R ic a 0.
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286 GROWING UP GLOBAL TABLE 5-4 Trends in Employment Rates Among Youth in China Men Women Age 1989 1997 1989 1997 16 43.5 20.4 55.2 24.1 17 63.6 31.3 61.1 55.6 18 75.2 59.7 76.3 52.7 19 79.6 70.1 80.9 66.3 20 90.4 72.3 86.4 79.2 21 87.5 79.2 86.2 85.4 22 94.1 80.0 87.5 83.3 23 93.5 89.6 87.5 86.6 24 94.4 86.8 93.6 89.0 25 92.4 91.5 93.9 89.1 SOURCE: Hannum and Liu (2005)
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THE TRANSITION TO WORK 287 BOX 5-1 Alternative Estimates of Employment Patterns Among Young Africans Ages 15-17 in South Africa, 1999 As part of the ILO's International Programme on the Elimination of Child Labour, member countries have undertaken, with ILO assistance, dedicated surveys on child labor called the Statistical and Information Monitoring Programme on Children (SIMPOC)
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288 GROWING UP GLOBAL samples to look at recent changes in economic activity in relationship to changes in school enrollment by single years of age. In this section we present results from seven countries that have large surveys and census extracts available for two points roughly 10 years apart.13 These include Brazil, China, Iran, Kenya, Mexico, South Africa, and Vietnam.
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THE TRANSITION TO WORK 289 As a crude indicator of the lag between school leaving and employment, we look at the gap in years between the age at which 50 percent are out of school and 50 percent are working in the labor market. In every case but Brazil, the gap for boys is positive, meaning that the age at which half the youth are out of school is generally lower than the age at which half the youth are employed.
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290 GROWING UP GLOBAL South Africa (2000) 0 25 50 75 100 10 12 14 16 18 20 22 24 26 28 Age Brazil (1999)
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THE TRANSITION TO WORK 291 countries, the direction and pace of trends within countries can be compared. These examples depict the highly variable transitions to labor market work currently being experienced by young people across societies.
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292 GROWING UP GLOBAL FIGURE 5-6 Recent changes in school and employment status by single years of age (ages 10-29) ; South Africa, Brazil, Kenya, Iran, Vietnam, Mexico, and China.
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THE TRANSITION TO WORK 293 Iran, Male 1987, 1998 10 12 14 16 18 20 22 24 26 28 Age Iran, Female 1987, 1998 10 12 14 16 18 20 22 24 26 28 Age Vietnam, Male 1989, 1999 10 12 14 16 18 20 22 24 26 28 Age Vietnam, Female 1989, 1999 10 12 14 16 18 20 22 24 26 28 Age Mexico, Male 1990, 2000 10 12 14 16 18 20 22 24 26 28 Age Mexico, Female 1990, 2000 10 12 14 16 18 20 22 24 26 28 Age 100 80 60 40 20 0 P e r c e n t a g e 100 80 60 40 20 0 P e r c e n t a g e 100 80 60 40 20 0 P e r c e n t a g e 100 80 60 40 20 0 P e r c e n t a g e 100 80 60 40 20 0 P e r c e n t a g e 100 80 60 40 20 0 P e r c e n t a g e China, Male 1989, 1997 0 20 40 60 80 100 10 12 14 16 18 20 22 24 26 28 Age China, Female 1989, 1997 0 20 40 60 80 100 10 12 14 16 18 20 22 24 26 28 Age P e r c e n t a g e P e r c e n t a g e Early Middle Late Early Middle Late Early Middle Late Early Middle Late Early Middle Late Early Middle Late Early Middle Late Early Middle Late
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294 GROWING UP GLOBAL 0.6 0.5 0.4 0.3 0.2 0.1 0.0 Pr op or tio n W or kin g 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Age 2001 1977 FIGURE 5-7 Female employment rate by age, Brazil, 1977 and 2001 (ages 10-25)
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THE TRANSITION TO WORK 295 tional norms and standards, beginning with the ILO Minimum Age Convention of 1973 (No.
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296 GROWING UP GLOBAL that in 2000 there were 211 million children ages 5-14 engaged in economic activity of which 186 million were child laborers.17 If one includes all children ages 5-17, the estimates are 351 million children engaged in economic activity of whom 245 million were child laborers (International Labour Office, 2002a) Trends in the Economic Activity of Children While the ILO's international data base provides estimates and projections of economic activity rates for 10-14-year-olds, these estimates are known to be biased substantially downward, particularly for girls, at least for the most recent period (Basu and Tzannatos, 2003; Ritualo, Castro, and Gormly, 2003)
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THE TRANSITION TO WORK 297 ity rates among 15-19-year-olds, considering the rapid rise in school participation during this same period.20 While some insights are available into trends in economic activity rates, there is almost no knowledge about trends in mean hours of work among working children or trends in the intermittent nature of work and therefore about whether or not there has been a change in the context of work with implications for the compatibility of child labor and schooling.21 Consequences for Health Given the enormous international concern about this issue, it may be surprising that evidence on the link between child labor and health and mortality is lacking. This is because health and mortality data are never linked with young people's work status or work history, so there is no way of investigating the context or the cause.
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298 GROWING UP GLOBAL and Souza, 2003)
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THE TRANSITION TO WORK 299 school and women's ability to participate in the labor force can be compromised when basic infrastructure is lacking (e.g., Desai and Jain, 1994)
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300 GROWING UP GLOBAL comes show a negative relationship, in most cases, the reported empirical associations cannot be interpreted as causal.22 Recent empirical analyses by Rosati and Rossi (2003) and CanalsCerda and Ridao-Cano (2003)
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THE TRANSITION TO WORK 301 quarter of the increase in enrollment. This finding suggests that much of the increase in school enrollment was drawn from the pool of children who were not previously reporting work (including household work)
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302 GROWING UP GLOBAL Vietnam who had worked when they were ages 8-13 in 1992-1993 were twice as likely to be working five years later as those who had not previously worked and were earning significantly higher wages, despite their lower levels of education, than children who started work for the first time in the intervening period. Again, the effects are larger for girls than boys.
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THE TRANSITION TO WORK 303 Standing (1999) suggests that the labor force is actually becoming more "feminine" in its characteristics, partly as a result of the rise in women's labor force participation, but more importantly because of the changing nature of work.
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304 GROWING UP GLOBAL (a) Never attended school 0 20 40 60 80 100 Age Paid work 15-19 Paid work 20-25 Early Middle Late (b)
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THE TRANSITION TO WORK 305 sector employed about 1.2 million, of whom 90 percent were women. Bangladesh is a society in which girls are typically confined to the home after puberty and marriage for girls typically occurs before the age of 18.
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306 GROWING UP GLOBAL BOX 5-3 The Role of Work in Preparing for Marriage and Motherhood in Egypt As a result of increasing consumerism and rising material expectations in Egypt, young couples are now less likely to join an extended household upon marrying and instead must accumulate considerable resources before they marry to establish their own household. In a study of young women's perceptions of marriage and work in Egypt, Amin and Al-Bassusi (2003)
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THE TRANSITION TO WORK 307 preserve traditional gender roles in the family after marriage, work before marriage is seen as a means to an end rather than as preparation for an adult work role in the labor force. Earlier studies of the motivations for young women's work in exportoriented industries in Taiwan (Greenhalgh, 1988)
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308 GROWING UP GLOBAL curred in many parts of the developing world may bring with it the seeds of change in gender work roles in the family, as family size diminishes and women's childrearing responsibilities occupy fewer years of their productive lifetime (Amin and Lloyd, 2002)
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309 T A B L E 5 -6 R ec en t Pa tt er ns a nd T re nd s in Y ou th U ne m pl oy m en t in I nd ia A ge s 15 -1 9 A ge s 20 -2 4 L oc at io n, T yp e of W or k, an d T im e Pe ri od M al e Fe m al e Fe m al e/ M al e M al e Fe m al e Fe m al e/ M al e R ur al U su al 19 87 -1 98 8 4.
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310 GROWING UP GLOBAL estimates, with even higher multiples in the case of female "usual" unemployment. Given the recent rise in labor force participation rates among young women, it is interesting to see how gender differences in unemployment rates may be changing.
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THE TRANSITION TO WORK 311 market debates. Unemployment rates by this measure rise substantially, to over 60 percent for 20-24-year-old black men and over 70 percent for 2024-year-old black women.
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312 7 6 5 4 3 2 1 0 Ratio Av er ag e Pe ru Co lo m bi a Co st a Ri ca H on du ra s M ex ic o Pa na m a Ve ne zu el a Br az il Ch ile Ur ug ua y Co un try Ea rly 1 99 0s La te 1 99 0s FI G U R E 5 -9 R el at iv e un em pl oy m en t ra te , L at in A m er ic a (r at io y ou th u ne m pl oy m en t an d ad ul t un em pl oy m en t)
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THE TRANSITION TO WORK 313 for employment, although other considerations, especially education and marriage, can also play a role. Researchers who study migration have long recognized the almost universal pattern that probabilities of migration are much higher for individuals in the 15-30 age range than for those in other age groups.
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314 GROWING UP GLOBAL (a) Percentage who migrated to another district or province in last year, Kenya 1989 and 1999 census 0 2 4 6 8 10 12 14 5 10 15 20 25 30 35 40 45 50 55 60 P e r c e n t a g e Males, 1999 Males, 1989 Females, 1999 Females, 1989 Age 4 2 0 6 8 10 12 14 16 18 P e r c e n t a g e 5 10 15 20 25 30 35 40 45 50 55 60 Age Males, 2000 Males, 1991 Females, 2000 Females, 1991 (b)
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THE TRANSITION TO WORK 315 late teens and early 20s moved across district boundaries in a single year is an impressive indicator of the mobility of young Kenyans. Migration rates fall rapidly as individuals age into their late 20s and early 30s.
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316 T A B L E 5 -8 R ea so ns f or M ig ra ti on b y A ge a nd S ex , M ex ic o 20 00 A ge s 10 -1 4 A ge s 15 -1 9 A ge s 20 -2 4 A ge s 25 -2 9 R ea so n M al e Fe m al e M al e Fe m al e M al e Fe m al e M al e Fe m al e L oo k fo r w or k 6.
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THE TRANSITION TO WORK 317 TABLE 5-9 Percentage of Migrants Migrating to an Urban Area by Previous Residence, Brazil 2000 Previous Residence (1995) Age Group Urban Rural 5-9 89.2 61.3 10-14 90.4 63.7 15-19 91.4 72.6 20-24 91.7 73.8 25-29 90.9 68.2 30-34 91.0 65.0 35-39 91.8 64.6 40-44 91.1 62.8 45-49 90.6 64.9 50-54 88.9 62.0 55-59 89.3 63.9 SOURCES: 2000 Brazil Census.
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318 GROWING UP GLOBAL DETERMINANTS OF CHANGING WORK TRANSITIONS AMONG YOUNG PEOPLE In Chapter 3, we discussed some of the factors affecting changes in the demand for schooling as well as some of the most notable features in the changing landscape of educational service provision. In many ways, a discussion of the determinants of changing work transitions should mirror our previous discussion.
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THE TRANSITION TO WORK 319 factors on the supply and demand sides of the labor market that may play a role in explaining the patterns and trends observed. On the supply side, we explore first the changing demography of the labor force and then look at some of the factors at the household level that may be affecting changes in the composition of new labor market entrants, including family size and the incidence of poverty.
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320 GROWING UP GLOBAL FIGURE 5-11 Size of population 1950-2050, ages 15-24. SOURCE: United Nations (2003d)
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THE TRANSITION TO WORK 321 –2 0 2 4 6 8 1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050 Year Brazil Kenya Mexico Pakistan Thailand An nu al P er ce nt ag e Ch an ge FIGURE 5-12 Annual growth rates of population, ages 15-24. SOURCE: United Nations (2003d)
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322 GROWING UP GLOBAL While the entry into the labor market of the large youth cohorts will create a need for millions of new jobs in developing countries, it is important to recognize that many Asian and Latin American countries successfully absorbed increases in the numbers of young workers in the 1970s and 1980s of similar proportions. Sustained economic growth, much of it concentrated in the urban economy, clearly played an important role in the historically unprecedented job creation that took place in many developing countries in the 1970s and 1980s.
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THE TRANSITION TO WORK 323 equilibrium, and in such cases, a ban, if effective, may leave poor families and their children impoverished. A recent empirical test of this hypothesis in Vietnam provides strong empirical support (Edmonds, 2003)
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324 GROWING UP GLOBAL In most parts of the world, the percentage of the population living on less than $1 per day has declined over the last decade (Chen and Ravallion, 2001)
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THE TRANSITION TO WORK 325 resulting from women's labor force participation should reduce children's work requirements, if that increased income can be applied to the purchase of child care and domestic help, thus freeing children to go to school and to stay in school longer. A rich literature on the relationship between family size and children's school has shown how key elements of context (e.g., level of economic development, government expenditure on education, family systems and gender role ideology, and phase of the demographic transition)
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326 GROWING UP GLOBAL substantially among regions, with much more positive aggregate economic experiences in Asia, where the majority of young people in developing countries live, than elsewhere. The composition of production across economic sectors substantially shapes the employment options for young people.
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THE TRANSITION TO WORK 327 initiated in the late 1970s and early 1980s by the International Monetary Fund and the World Bank, was the promotion of long-term economic growth (Haddad et al., 1995)
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328 GROWING UP GLOBAL work for youth" (United Nations General Assembly, 2003)
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THE TRANSITION TO WORK 329 sector and private-sector jobs have less stability and fewer benefits than past jobs, but compared with earlier cohorts, young people in China today enjoy substantially higher incomes. Egypt is another interesting case.
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330 GROWING UP GLOBAL ties are substantially higher in the United States than in Colombia, particularly in the first few years of a job, when on-the-job training should be most cost-effective. Even after further controlling for the fact that the occupational and industrial distribution of the workforce in the two settings differs in ways that would predict such differences, jobs in Colombia remain on average shorter in duration.
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THE TRANSITION TO WORK 331 of employment discrimination for new labor force entrants. In Egypt, for example, the private sector appears to be virtually closed to women outside manufacturing and finance.
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332 GROWING UP GLOBAL nological change having the biggest payoff in settings in which the labor force is more educated. In the context of recent experience in Asia, Montgomery et al.
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THE TRANSITION TO WORK 333 tion but are intended to discourage child labor or to limit competition and thereby protect workers in developed countries. These include international labor standards and trade sanctions against countries with labor practices that are seen to be deleterious to children as well as certain features of macroeconomic policy.
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334 GROWING UP GLOBAL cent debate about the motives as well as the effects of unilateral actions by developed countries to ban imports of products produced by child labor. First, while there is some evidence that the use of child labor in unskilledlabor-intensive export industries can have some modest positive effect on a country's comparative advantage, these effects are far outweighed by the importance of a country's labor endowment and the overall educational level of the working-age population in determining comparative advantage in a particular industry (Busse, 2002)
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THE TRANSITION TO WORK 335 This policy alone can have huge consequences for poverty in rural regions of developing nations, causing agricultural wages to be low, contributing to underemployment, and diminishing young people's opportunity for work in rural areas.37 National Labor Policies and Programs Laws and Regulations Some labor laws and regulations, such as minimum ages of employment and youth-specific minimum wages, are specifically adopted with young people in mind. Others, such as rules governing employment contracts, conditions of employment including hours and wages, and job security or antidiscrimination legislation, are more general but may have particular consequences for new labor market entrants.
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336 GROWING UP GLOBAL Hinton, 2001)
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THE TRANSITION TO WORK 337 training, (2) information sharing, (3)
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338 GROWING UP GLOBAL cause of its costs (Gill and Fluitman, 1997)
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THE TRANSITION TO WORK 339 countries of the Organisation for Economic Co-operation and Development suggests that job registries can be cost-effective if properly managed, however (Inter-American Development Bank, 2003a)
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340 GROWING UP GLOBAL have documented program effects on children's work participation as well. Variations in key features of program design, as well as in the contexts in which these programs have been applied (e.g., prevalence and depth of poverty, previous school participation, school quality, opportunities for children to work for pay)
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THE TRANSITION TO WORK 341 to be due to the availability of the after-school program, particular in Bahia -- an region with high rates of child labor -- where nonprogram children were also allowed to participate in the after-school program. PETI participants were also more likely than nonparticipants to progress to the next grade and less likely to engage in various types of hazardous work.
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342 GROWING UP GLOBAL Saharan Africa, and the Middle East, which are currently experiencing unprecedented growth in the size of their youth populations. Rates of growth in the size of the potential youth labor force (ages 15-24)
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THE TRANSITION TO WORK 343 practices. Relatively few of these have been evaluated for their effectiveness.
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344 GROWING UP GLOBAL Government incentives for firms to invest in training, for training providers to provide high quality and relevant training, and for workers to invest in training have been identified as promising alternatives to the direct government provision of training. Evidence suggests that government-sponsored vocational education and training are often relatively expensive and inefficient at matching training curricula and training opportunities with job demands.
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THE TRANSITION TO WORK 345 • How can labor market policies encourage employers to invest in on-the-job training for young workers? • How do national educational and labor market policies in developed countries affect international labor migration among youth?
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