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Understanding the Dynamics of Labor Income Inequality in Latin America

Understanding the Dynamics of Labor Income Inequality in Latin America

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Document
Content Type:
Understanding the Dynamics of Labor Income Inequality in Latin America
Language:

English

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english
Identifier
skpEng
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Other sources

Experts from many international, regional and national agencies generously share their views, experiences and findings on skills, helping policy-makers among other stakeholders to understand the linkages between education, training and the world of work, and how to integrate skills into national development planning to promote employment and economic growth.

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skpOSource
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other-sources
Topics:

Access to training

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Access for all to good quality education, vocational training and workplace learning is a fundamental principle of social cohesion and economic growth. Some groups of people may require targeted attention if they are to benefit from education, training and employment opportunities.  

This is particularly the case for disadvantaged youth, lower skilled workers, people with disabilities, and people in rural communities. The attractiveness of vocational education and training is enhanced when combined with entrepreneurship training and when public policies encourage utilization of higher skills by business. 
 

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skpATSU
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access-to-training

Other topic

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skpOIssue
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other-topic
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:
18 Nov 2016
Since the early 2000s, after a long period of wide and persistent gaps, Latin America has experienced a steady decline in income inequality. This paper presents evidence of a trend reversal in labor income inequality, which is considered the main factor behind such a decline in income inequality across the region. The analysis shows that, while labor income inequality increased during the 1990s, with heterogeneous experiences across countries, it fell in a synchronized way across countries beginning in the early 2000s. This systematic decline was supported by an expansion in real hourly earnings among the bottom of the wage distribution and, to a lesser extent, the middle part of the earnings distribution, thus reducing upper and lower tail inequality. This trend reversal is explained by a lower dispersion of earnings among workers with observable different attributes and by a much less extensive dispersion of residual labor inequality. Regarding the earnings differentials among workers with observable different attributes, the analysis concludes that the decline in labor inequality in Latin America has been closely associated with a reduction in the college/primary education premium and in the urban-rural earnings gap, coupled with a steady drop in the high school/primary education premium, which accelerated markedly since the 2000s, as well as a reduction in the experience premium across all age groups.

How can job opportunities for young people in Latin America be improved?

How can job opportunities for young people in Latin America be improved?

Type:
Document
Content Type:
How can job opportunities for young people in Latin America be improved?
Language:

English

Slug
english
Identifier
skpEng
Sources:

Other sources

Experts from many international, regional and national agencies generously share their views, experiences and findings on skills, helping policy-makers among other stakeholders to understand the linkages between education, training and the world of work, and how to integrate skills into national development planning to promote employment and economic growth.

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Identifier
skpOSource
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other-sources
Topics:

Training quality and relevance

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Identifier
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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Identifier
skpRPS
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research-papers
Publication Date:
07 Oct 2016
Job training programs for vulnerable youth are the main response of Latin American governments to address the problem of inadequate employment opportunities for young people. Despite its importance, knowledge about these programs is scarce. This study contributes to filling this gap in the literature by presenting new evidence on the effectiveness of six of these programs operating or that were implemented in Colombia, Honduras, Mexico, Panama, Peru and Dominican Republic. This analysis uses the results of impact evaluations of these programs and the results of qualitative surveys of young participants and employers, and in-depth interviews to training centers, employers and policy makers. The main results confirm the limited evidence available, namely, that these programs have little impact on the probability of getting a job (although there is a high heterogeneity in these impacts), but a significant impact on job quality. From this analysis, the report proposes a research agenda to improve knowledge on the functioning and impact of these programs, and provide a series of recommendations to improve the design and increase the effectiveness of youth training programs.
Subject Tags:

Vocational training

Slug
vocational-training
Identifier
124
Regions:

Americas

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Prácticas de capacitación y reclutamiento de personal de los establecimientos en Honduras

Prácticas de capacitación y reclutamiento de personal de los establecimientos en Honduras

Type:
Document
Content Type:
Prácticas de capacitación y reclutamiento de personal de los establecimientos en Honduras
Language:

Spanish

Slug
spanish
Identifier
skpEsp
Sources:

Other sources

Experts from many international, regional and national agencies generously share their views, experiences and findings on skills, helping policy-makers among other stakeholders to understand the linkages between education, training and the world of work, and how to integrate skills into national development planning to promote employment and economic growth.

Thumbnail
Identifier
skpOSource
Slug
other-sources
Topics:

Access to training

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Access for all to good quality education, vocational training and workplace learning is a fundamental principle of social cohesion and economic growth. Some groups of people may require targeted attention if they are to benefit from education, training and employment opportunities.  

This is particularly the case for disadvantaged youth, lower skilled workers, people with disabilities, and people in rural communities. The attractiveness of vocational education and training is enhanced when combined with entrepreneurship training and when public policies encourage utilization of higher skills by business. 
 

Identifier
skpATSU
Slug
access-to-training
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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Identifier
skpRPS
Slug
research-papers
Publication Date:
07 Oct 2016

Si bien Honduras ha experimentado tasas de crecimiento positivas en la última década, solo afectadas por la crisis financiera del 2008 y 2009, y la crisis política del 2009, un hecho relevante es que el crecimiento no se ha sustentado en el aumento de la productividad, la que ha decaído por varias décadas con respecto a la productividad de los países de América Latina y el Caribe (ALC) y, más aun, respecto a países del sureste asiático. La baja productividad se refleja dramáticamente en el mercado laboral. Las tasas de informalidad y subempleo de Honduras son de las más altas de ALC, y más de la mitad de la población vive en pobreza. Es posible que el aumento de inversiones pudiera ayudar a Honduras recuperar las tasas de crecimiento previas a las crisis, pero la creación de buenos empleos y la reducción de la pobreza dependen esencialmente de aumentar sostenidamente la productividad, particularmente, la productividad laboral que es la base para potenciar el mejor uso de los demás factores productivos. Este estudio contiene los principales resultados de la Encuesta sobre Productividad y Formación de Recursos Humanos en Establecimientos en Honduras (EPFRH 2011) y aporta respuestas sobre las prácticas, incidencia y contenidos de la capacitación, entre otros aspectos, que los establecimientos proporcionan a la fuerza laboral en Honduras.

Subject Tags:

Access to training

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access-to-training
Identifier
683

Private sector

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private-sector
Identifier
229

Vocational training

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vocational-training
Identifier
124

Work-based learning

Slug
work-based-learning
Identifier
679
Regions:

Americas

Region Image
Countries and territories:

Vocational skills development: Key to employment and income

Vocational skills development: Key to employment and income

Type:
Document
Content Type:
Vocational skills development: Key to employment and income
Language:

English

Slug
english
Identifier
skpEng
Sources:

Bilateral organizations

The development agencies of many countries make skills development a pillar of their Official Development Assistance – from the perspective of education systems, employment promotion, poverty reduction, and private sector development. Documentation of their experience, evaluations and impact assessments, mission statements, and other knowledge products are made available through the Global KSP.

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Identifier
skpBiOrg
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bilateral-organizations
Topics:

Training quality and relevance

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Identifier
skpTrainQR
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training-quality-and-relevance
Knowledge Products:

Promotional material

Presentations, discussion papers, meeting reports, promotional materials, videos, fact sheets, brochures and newsletters on skills development for employment.

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skpAIM
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promotional-material
Publication Date:
10 Aug 2016
The brochure illustrates the Swiss Agency for Development and Cooperation (SDC) engagement in vocational education and training. First, the Swiss vocational education and training system is briefly explained. Second, examples of VET projects in Nepal, Albania, Niger, Bangladesh and Honduras are presented in order to illustrate how, where and which elements of the Swiss VET system are implemented in the partner countries.
Subject Tags:

Development policy

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development-policy
Identifier
136

Lifelong learning

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lifelong-learning
Identifier
400

TVET systems

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tvet-systems
Identifier
661

Vocational training

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vocational-training
Identifier
124

Youth

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youth
Identifier
319
Regions:
Countries and territories:

Bangladesh

Bangladesh has a strong track record of growth and development, even in times of elevated global uncertainty.  A robust demographic dividend, strong ready-made garment exports, resilient remittance inflows, and stable macroeconomic conditions have supported rapid economic growth over the past two decades. A strong recovery from the COVID-19 pandemic continued in FY22, although a recent surge in commodity prices has presented new headwinds. 

Bangladesh reached lower-middle income status in 2015. It is on track to graduate from the UN’s Least Developed Countries list in 2026. Poverty declined from 43.5 percent in 1991 to 14.3 percent in 2016, based on the international poverty line of $1.90 a day (1).  

Like many of its Asian neighbours, Bangladesh faces a major challenge trying to develop modern, employability skills for tens of millions of young women and men. It has a large informal sector, which accounts for 94.7 percent of the total employment in 2017 (2). Youth continue to be highly affected by the lack of opportunities, with the share of youth aged 15-24 not in employment, education or training (NEET), estimated at 27.8 percent in 2020 (3). 

TVET has a huge role to play in equipping the vast young labour force of 15-29 years referred to as the country’s “demographic dividend” with employability skills and providing enhanced support services to ensure a better transition from school to work. TVET may also contribute to reducing poverty by providing employability skills, particularly to those who drop out of school early and to a large number of unemployed and underemployed adults.  

Despite many reform initiatives by the government, the TVET sector needs further strengthening through reform of policies and systems in the labour market.  Enhancing industry-relevance of TVET qualifications will furthermore require closer Government cooperation with the private sector. For one and a half decade, the ILO has worked closely with the Government of Bangladesh and its Social Partners to reform the TVET sector and to improve access for people to increase their skills and employability, in particular youth, women and people from other marginalized groups. 

The impact of the COVID-19 pandemic had detrimental effects on the TVET sector, due to the nation-wide closure of all educational institutes for one and a half years, starting on 17 March 2020.  Most students’ learning was effectively abolished for this duration, and learning and certification was only possible through limited online learning facilities in existence at the time. Only recently has the TVET returned to its prior activity level. 

The ILO landmark programmes aim to strengthen and improve the environment for industry skills development, address the mismatch between the supply and demand for skills training, and drive the increased employability of millions of young women and men. ILO’s support to develop the skills system in Bangladesh has focused on skills system governance, development of skills policies and qualifications frameworks; delivery of quality skills training, expanding access to TVET, and involvement by the private sector.    

 

Sources 

(1) https://www.worldbank.org/en/country/bangladesh/overview

(2) https://ilostat.ilo.org/topics/informality/

(3) https://ilostat.ilo.org/topics/youth/

Country Assessment and Priority (CAP) – Bangladesh strategy for skills and lifelong learning (2022)

Situation Analysis of Bangladesh TVET Sector (2019) https://www.ilo.org/wcmsp5/groups/public/—asia/—ro-bangkok/—ilo-dhaka/documents/publication/wcms_735704.pdf_

Política nacional de la mujer - II Plan de igualdad y equidad de género de honduras

Política nacional de la mujer - II Plan de igualdad y equidad de género de honduras

Type:
Document
Content Type:
Política nacional de la mujer - II Plan de igualdad y equidad de género de honduras
Language:

Spanish

Slug
spanish
Identifier
skpEsp
Sources:

Governments

Governments hold a wealth of knowledge on skills development, and are increasingly realizing the value of learning from each others’ experiences. Their policy documents, programme evaluations, and research findings contain their experience and ideas on how to better link skills to employment

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skpGov
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governments
Topics:

Gender equality

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Women represent both half of the world's population – and half the world's economic potential. Their participation in the labour market reduces poverty because they often invest 90 per cent of their income in the well-being, education and nutrition of their families. Yet labour force participation by women has stagnated at about 55 per cent globally since 2010. Moreover, women are disproportionately represented in precarious work – low-paid, low-skilled and insecure jobs.

Training plays an important role in the pursuit of equality of opportunity and treatment for women and men in the world of work. Yet women often lack access to technical and vocational education and training. Many also lack the basic functional skills, such as literacy and numeracy, to participate meaningfully in the work force. Overcoming this challenge requires the adoption of a life-cycle approach. This includes improving girls’ access to basic education; overcoming logistic, economic and cultural barriers to apprenticeships and to secondary and vocational training for young women; and meeting the training needs of women re-entering the labour market and of older women who have not had equal access to opportunities for lifelong learning.

Identifier
skpGenEqul
Slug
gender-equality

Other topic

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Identifier
skpOIssue
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other-topic
Knowledge Products:

National policies and initiatives

National legislation, policies and initiatives on the issue of training and skills development and the world of work. 

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Identifier
skpNatPol
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national-policies-and-initiatives
Publication Date:
04 Mar 2016

‏La Política Nacional de la Mujer y el II Plan de Igualdad y Equidad de Género de Honduras 2010-2022 (II PIEGH), representan una estrategia para satisfacer las principales necesidades y demandas de las mujeres como titulares de derechos (incluyendo el derecho a la educación y el empleo), para reforzar los logros y avanzar en forma sostenida hacia la igualdad plena entre hombres y mujeres.

Subject Tags:
Slug
294
Identifier
294

Globalization

Slug
globalization
Identifier
267

Women

Slug
women
Identifier
318
Regions:

Americas

Region Image
Countries and territories:

Vocational training and productivity

Vocational training and productivity

Type:
Document
Content Type:
Vocational training and productivity
Language:

English

Slug
english
Identifier
skpEng
Sources:

ILO

The International Labour Organization is the tripartite U.N. agency that promotes Decent Work through employment, social security, labour standards and social dialogue. Its work on skills development is guided by the conceptual framework on Skills to improve productivity, employment growth, and development agreed in 2008 by representatives of Governments, Employers’ Associations and Workers’ Associations. Research, policy advice, and pilot projects and technical cooperation programmes to apply good practices in different circumstances across its 185 member States aims to boost the employability of workers, the productivity and competitiveness of enterprises, and the inclusiveness of economic growth. The ILO Secretariat in offices in 40 countries works with Ministries of Labour, employers’ organizations, and trade unions to integrate skills development into national and sector development strategies in order to better meet current labour market needs and to prepare for the jobs of the future; to expand access to employment-related training so that youth, persons with disabilities and other vulnerable groups are better able to acquire skills and secure productive and decent work; and to improve the ability of public employment services to provide career guidance, maintain labour exchange services, and deliver active labour market programmes.For more information regarding the ILO’s work on skills and employability go to: http://www.ilo.org/skills/lang--en/index.htm; for ILO/Cinterfor's Knowledge Management Plarform, see: http://www.oitcinterfor.org

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Identifier
skpILO
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ilo
Topics:

Access to training

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Access for all to good quality education, vocational training and workplace learning is a fundamental principle of social cohesion and economic growth. Some groups of people may require targeted attention if they are to benefit from education, training and employment opportunities.  

This is particularly the case for disadvantaged youth, lower skilled workers, people with disabilities, and people in rural communities. The attractiveness of vocational education and training is enhanced when combined with entrepreneurship training and when public policies encourage utilization of higher skills by business. 
 

Identifier
skpATSU
Slug
access-to-training

Other topic

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Identifier
skpOIssue
Slug
other-topic
Knowledge Products:

Case studies and good practices

Case studies that document good practices and illustrate the benefits and lessons learnt of particular approaches or methods in real practice. 

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Identifier
skpCaseStdy
Slug
case-studies-and-good-practices
Publication Date:
19 Aug 2013
The publication features a selection of case studies documenting good practices from experiences of vocational training institutions in Latin America and the Caribbean in skills development for improved productivity and competitiveness of enterprises in the region.
Subject Tags:

Apprenticeships

Slug
apprenticeships
Identifier
639

Enterprises

Slug
enterprises
Identifier
175

Entrepreneurship

Slug
entrepreneurship
Identifier
182

Occupational safety and health

Slug
occupational-safety-and-health
Identifier
327

Productivity

Slug
productivity
Identifier
188

Vocational training

Slug
vocational-training
Identifier
124
Regions:

Americas

Region Image