A Skills-Based Human Capital Framework to Understand the Phenomenon of Youth Economic Disengagement
This paper revisits traditional human capital models and proposes a new conceptual framework of human capital accumulation, anchored in skills development, to illustrate the phenomenon and implications of youth economic disengagement. In the framew...
| Main Authors: | , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2018
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/344881519143351361/A-skills-based-human-capital-framework-to-understand-the-phenomenon-of-youth-economic-disengagement http://hdl.handle.net/10986/29408 |
| Summary: | This paper revisits traditional human
capital models and proposes a new conceptual framework of
human capital accumulation, anchored in skills development,
to illustrate the phenomenon and implications of youth
economic disengagement. In the framework, youth economic
disengagement is defined as a state (temporary or permanent)
where individuals stop accumulating human capital due to
inadequate access and quality of opportunities for skills
development through formal education and employment. Total
economic disengagement is a rational choice that individuals
make when (i) the formal education system and labor market
do not contribute to build skills that are valued by the
labor market, and (ii) the costs related to economic
engagement (that is, studying and working) surpass its
benefits. The phenomenon of economic disengagement has
lifelong implications that not only constrain and restrain
future earnings, but also undermine prospects for
improvements in productivity and economic growth. |
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