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Demand-driven skills training and results-based contracting: Lessons for youth employment programs

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Document
Content Type:
Demand-driven skills training and results-based contracting: Lessons for youth employment programs
Language:

English

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english
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skpEng
Sources:

Information is gathered from other international organizations that promote skills development and the transition from education and training to work. The Interagency Group on Technical and Vocational Education and Training (IAG-TVET) was established in 2009 to share research findings, coordinate joint research endeavours, and improve collaboration among organizations working at the international and national levels.

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skpIntOrg
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international-organizations
Topics:

Training quality and relevance

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skpTrainQR
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training-quality-and-relevance

Youth employability

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Globally, nearly 68 million young women and men are looking for and available for work,  and an estimated 123 million young people are working but living in poverty. The number who are not in employment, education or training (NEET) stands at 267 million, a majority of whom are young women. Significantly, young people are three times as likely as adults (25 years and older) to be unemployed.

Skills development is a primary means of enabling young people to make a smooth transition to work. A comprehensive approach is required to integrate young women and men in the labour market, including relevant and quality skills training, labour market information, career guidance and employment services, recognition of prior learning, incorporating entrepreneurship with training and effective skills forecasting. Improved basic education and core work skills are particularly important to enable youth to engage in lifelong learning as well as transition to the labour market. 

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skpYoEmp
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youth-employability
Knowledge Products:

Research papers

Working papers, reports, and other publications from international organizations, academic institutions and bilateral agencies. Research findings to stimulate informed debate on skills, employment and productivity issues. 

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skpRPS
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research-papers
Publication Date:
01 Sep 2020
Demand-driven training (DDT) and results-based contracting (RBC) are two mechanisms used to enhance the effectiveness and impact of skill training programs. DDT links skills development explicitly with the job market, typically through employer engagement. Private sector employers define what type of training is necessary, either directly or indirectly through training providers. RBC is based on an agreement with training providers by which the disbursement of funding is conditional on the achievement of defined targets, most often verified gainful employment. Although these two mechanisms are independent, they are frequently combined. Much has been written about various approaches to DDT. However, relatively little is known about the application of RBC in skills training.

This report reviews the literature, identifies project examples and derives lessons for the design and implementation of both DDT and RBC. A summary of the existing literature on international experiences with both DDT and RBC, including good practices, is presented here. This review aims to identify the most effective ways to deliver these programs and provide general lessons on their design and implementation. The audience for this review includes World Bank teams and other development and policy practitioners interested in results-based contracting in the context of demand driven training.
Subject Tags:

Employability

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employability
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643

Job matching

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job-matching
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649

Skills and training policy

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skills-and-training-policy
Identifier
666
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