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Submitted by Yassin on

Accounting for differences in skills among youth for inclusion in the labor market
The Bank needs to provide an approach to youth inclusion that accounts for the differences in the levels/types of skills. For instance, promoting entrepreneurship can include young people with high skills and innovative ideas. This requires tackling constraints to doing business, particularly access to finance, strengthening the role of venture capital and angel investors, and pushing governments to allow mobile collateral for loans and protect property rights. Regulatory reforms on bankruptcy also need to be implemented to allow business exit and counter risk-aversion. Youth with medium-skills, on the other hand, require vocational training to match the demands of employers in the labor market. This type of youth also tends to be the most likely to ‘wait’ for public sector jobs. Aligning private-public sector salaries can also help tackling this issue. Finally, youth with low-skills can be included educating them to accept the low-skill jobs often taken by immigrants in agriculture, construction, hospitality, etc., which they refuse to take for ‘shame’. Microfinance, on the other hand, can help poor youth (particularly females) with low-skills but entrepreneurial ideas accessing credit to start their own business.