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Opportunities and Challenges faced by the Brazilian Youth Lima, August 2014 Ricardo Paes de Barros Diana Coutinho

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Page 1: Opportunities and Challenges faced by the Brazilian Youthcisepa.pucp.edu.pe/wp-content/uploads/2014/09/Brasil-Ricardo-Paes... · Opportunities and Challenges faced by the Brazilian

Opportunities and Challenges faced by the Brazilian Youth

Lima, August 2014

Ricardo Paes de Barros Diana Coutinho

Page 2: Opportunities and Challenges faced by the Brazilian Youthcisepa.pucp.edu.pe/wp-content/uploads/2014/09/Brasil-Ricardo-Paes... · Opportunities and Challenges faced by the Brazilian

Public policy for the Youth

All demographic groups deserves public attention in all countries at all times.

Exceptional importance for Brazil

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1. El país tiene la mayor juventud de todos los tiempos. Son más de 50 millones por dos décadas. Ese, entretanto, no es el grupo más grande en términos relativos. La ocurrencia del grupo más grande fue hace 25 años.

Page 4: Opportunities and Challenges faced by the Brazilian Youthcisepa.pucp.edu.pe/wp-content/uploads/2014/09/Brasil-Ricardo-Paes... · Opportunities and Challenges faced by the Brazilian

2. Los jóvenes de hoy formarán el grupo más grande de trabajadores adultos que el país jamás tendrá, tanto en nivel absoluto como relativo.

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3. A pesar de todos eses máximos, los jóvenes de hoy, al final de la vida, dejarán de representar el mayor número de ancianos, tanto en términos absolutos como relativos. Sus hijos formarán el mayor grupo de ancianos del país.

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Public policy for the Youth

Why should we give especial attention to the youth? Vulnerability or specificity?

Policies for all or targeted to specific groups

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4. Con relación a los adultos, los jóvenes están menos deprimidos, se sienten más seguros y fuman menos.

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4. Con relación a los adultos, los jóvenes están menos deprimidos, se sienten más seguros y fuman menos.

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4. Con relación a los adultos, los jóvenes están menos deprimidos, se sienten más seguros y fuman menos.

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Por que se preocupar? 5. De las varias edades, la juventud es aquella que está más representada en la clase media. En la clase baja, el grupo de edades que está más representado es compuesto por niños. En la clase alta, el grupo más representado es compuesto por ancianos, seguido de adultos no ancianos.

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Fuente: HDI-M Atlas

1991 2010

Porcentaje de Adolecentes de 15 a 17 años que ya son Madres em las Municipalidades Brasileñas

6. El porcentaje de jóvenes que se vuelven madre prematuramente (antes de los 16 años) ha disminuido moderadamente a lo largo de la última década y se mantiene elevada.

Clave

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Public policy for the Youth

I. Opportunities to acquire and develop abilities

II. Opportunities to use productively the acquired abilities

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Evolución de la tasa de desempleo por edad

Fuente: SAE/PR con base en la Pesquisa Nacional por Amostra de Domicílios (PNAD).

7. La tasa de desempleo de jóvenes hasta 25 años es tres veces la de los adultos y más elevada hoy que hace dos décadas.

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28% 77%

6 años

Rango de 18 a 24 años Rango de 30 a 64 años

TASA DE ROTACIÓN

PROMEDIO DE TIEMPO EN EL EMPLEO ACTUAL

2 años Fuente: 1. SAE/PR con base en el Cadastro Geral de Empregados e Desempregados (CAGED), 2013 (hasta el mês de septiembre). 2. SAE/PR con base em la Pesquisa Nacional por Amostra de Domicílios (PNAD), 2012.

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5% 11%

Rango de 18 a 24 años Rango de 30 a 64 años

HA TRABAJADO EN EL AÑO, PERO NO ESTÁ TRABAJANDO

AHORA

CAMBIÓ DE EMPLEO POR LO MENOS UNA VEZ EM EL ÚLTIMO AÑO

14% 6%

Fuente: SAE/PR con base en la Pesquisa Nacional por Amostra de Domicílios (PNAD), 2012.

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34% 26%

20%

JOVEN ADULTO

PORCENTAJE QUE PIDE SU DESPIDO, ENTRE EL TOTAL DE

DESPIDOS

PROPORCIÓN QUE ESTÁ EN EL 1º EMPLEO

6% Fuente: 1. SAE/PR con base en el Cadastro Geral de Empregados e Desempregados (CAGED), 2013 (hasta el mês de septiembre). 2. SAE/PR con base en la Pesquisa Nacional por Amostra de Domicílios (PNAD), 2012.

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Public policy for the Youth

I. Limited access to work II. Unattractive jobs III. Rigid contracts IV. Low wages V. Low productivity VI. Low education levels

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30

35

40

45

50

55

60

65

70

75

80

85

90

95

100

105

110

15 20 25 30 35 40 45 50 55 60 65 70 75

Rem

uner

ação

(50

anos

=10

0)

Idade (anos)

Perfil Etário da Remuneração

2001

2011 2009

47%

56%

8. La importancia de la experiencia en el mercado laboral está disminuyendo: la diferencia de sueldos entre adultos y jóvenes ha claramente descendido.

Perfil de Edad de la Remuneración

Edad (años)

Rem

uner

ació

n (5

0 añ

os =

100

)

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Public policy for the Youth

I. Limited access to work II. Unattractive jobs III. Rigid contracts IV. Low wages V. Low productivity VI. Low education levels

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0

10

20

30

40

50

60

70

1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015

Thou

sand

s US$

(200

5) p

er w

orke

r per

yea

r

The Evolution of the Average Labor ProductivitySelected countries: 1950-2011

Japan

Korea

Argentina

Brazil

Chile

China

Source: SAE/PR based on the Penn World Tables. Labor productivity as GDP/worker (Real GDP at constant 2005 national prices).

Desafío: aumentar la productividad

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0

10.000

20.000

30.000

40.000

50.000

60.000

70.000

80.000

0 10.000 20.000 30.000 40.000 50.000 60.000 70.000 80.000

Labo

r Pro

duct

ivity

in 2

011

(US$

(200

5) p

er y

ear p

er w

orke

r)

Labor Productivity in 1980 (US$ (2005) per year per worker)

Ratio between labor productivity in 1980 and 2011

Brazil

Korea

Source: SAE/PR based on the Penn World Tables. Labor productivity as GDP/worker (Real GDP at constant 2005 national prices).

China

Desafío: aumentar la productividad

Page 22: Opportunities and Challenges faced by the Brazilian Youthcisepa.pucp.edu.pe/wp-content/uploads/2014/09/Brasil-Ricardo-Paes... · Opportunities and Challenges faced by the Brazilian

Desafío: aumentar la productividad

Page 23: Opportunities and Challenges faced by the Brazilian Youthcisepa.pucp.edu.pe/wp-content/uploads/2014/09/Brasil-Ricardo-Paes... · Opportunities and Challenges faced by the Brazilian

Desafío: aumentar la productividad

Page 24: Opportunities and Challenges faced by the Brazilian Youthcisepa.pucp.edu.pe/wp-content/uploads/2014/09/Brasil-Ricardo-Paes... · Opportunities and Challenges faced by the Brazilian

Public policy for the Youth

I. Limited access to work II. Unattractive jobs III. Rigid contracts IV. Low wages V. Low productivity VI. Low education levels

Page 25: Opportunities and Challenges faced by the Brazilian Youthcisepa.pucp.edu.pe/wp-content/uploads/2014/09/Brasil-Ricardo-Paes... · Opportunities and Challenges faced by the Brazilian

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

4,5

5,0

5,5

6,0

6,5

7,0

First Second Third Fourth Fifth Sixth Seventh Eight Ninth Tenth

Aver

age

annu

al g

row

th ra

te o

f per

capi

ta in

com

e (%

)

Tenths of the income distribution

Average annual growth rate by tenths of the distribution of family income Brazil: 2001-2011

Source: SAE/PR based on the PNADs from 2001 to 2011.

Average

Challenges: Productive inclusion of the very poor

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Challenges: Productive inclusion of the very poor’

0,0%

0,5%

1,0%

1,5%

2,0%

2,5%

3,0%

3,5%

4,0%

4,5%

5,0%

5,5%

6,0%

0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100

Aver

age

annu

al g

row

th ra

te (%

)

Percentile of the distribution of per capita income

Average growth rate of labor income by percentile of the distribution of per capita income: Brazil 2001-2011

Average

Poor Rich

Brasil Sem Miséria

Page 27: Opportunities and Challenges faced by the Brazilian Youthcisepa.pucp.edu.pe/wp-content/uploads/2014/09/Brasil-Ricardo-Paes... · Opportunities and Challenges faced by the Brazilian

10%

12%

14%

16%

18%

20%

22%

24%

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Evolução da porcentagem das pessoas de 20 a 40 anos com baixa escolaridade entre os 10% mais pobres

Challenges: Productive inclusion of the very poor

Page 28: Opportunities and Challenges faced by the Brazilian Youthcisepa.pucp.edu.pe/wp-content/uploads/2014/09/Brasil-Ricardo-Paes... · Opportunities and Challenges faced by the Brazilian

9. Jóvenes con escolarización muy baja (hasta 4 años) han enfrentado graves y crecientes dificultades para la inserción en el mercado laboral.

PROJOVEM

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30%

35%

40%

45%

50%

55%

60%

65%

70%

75%

80%

85%

90%

95%

100%

20 25 30 35 40 45 50 55 60 65 70 75

Perfil etário da taxa de ocupação: homens com 5 a 8 anos de estudo

1992

2012

Dificuldades para incluir trabalhadores com baixa escolaridade Challenges: Productive inclusion of the very poor

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Public policy for the Youth

I. Limited access to work II. Unattractive jobs III. Rigid contracts IV. Low wages V. Low productivity VI. Low education levels

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Public policy for the Youth

The importance of expanding and improving the educational

opportunities and adapting the opportunities to the needs and

interests of the youth

Page 32: Opportunities and Challenges faced by the Brazilian Youthcisepa.pucp.edu.pe/wp-content/uploads/2014/09/Brasil-Ricardo-Paes... · Opportunities and Challenges faced by the Brazilian

Evolution of average schooling by birth cohort: Brazil

Born in 1980 in Brazil

Born in 1952 in Chile 28 years behind

Birth year

Aver

age

scho

olin

g

10. Desafío: proporcionar oportunidades y hacer frente a las expectativas de la juventud

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Evolución del porcentaje de jóvenes adolescentes que frecuentan la escuela

Fuente: SAE/PR con base en la Pesquisa Nacional por Amostra de Domicílios (PNAD).

El porcentaje de jóvenes adolescentes fuera de la escuela está elevada y no ha declinado a lo largo de la última década.

40

45

50

55

60

65

70

75

80

85

90

95

100

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Frequentam a escola

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Perfil de edad del porcentaje de jóvenes afuera de la escuela

0

10

20

30

40

50

60

70

80

90

100

15 16 17 18 19 20 21 22 23 24

p g j

1992 2002

2012

Fuente: SAE/PR con base en la Pesquisa Nacional por Amostra de Domicílios (PNAD).

10. Desafío: proporcionar oportunidades y hacer frente a las expectativas de la juventud

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10. Desafío: proporcionar oportunidades y hacer frente a las expectativas de la juventud

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Public policy for the Youth

The Youth is available? How should we measure

educational status?

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Fuente: SAE/PR con base em la Pesquisa Nacional por Amostra de Domicílios (PNAD).

11. Entre los jóvenes, el porcentaje que no trabaja disminuye con la edad y que no estudia crece. Es entre los 18 y 21 años que el porcentaje de los que ni trabajan ni estudian alcanza su máximo.

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12. El porcentaje de los jóvenes entre 18 y 21 que ni trabaja ni estudia, ni busca trabajo está elevada y ha crecido a lo largo de la última década.

5

6

7

8

9

10

11

12

13

14

15

20

21

22

23

24

25

26

27

28

29

30

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Porc

enta

je (%

)

Porc

enta

je (%

)

15 a 17 años

18 a 24 años

25 a 29 años

18 a 21 años

Fuente: SAE/PR con base en la Pesquisa Nacional por Amostra de Domicílios (PNAD).

Evolución del porcentaje de jóvenes que ni trabajan ni estudian por edad

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0

2

4

6

8

10

12

14

16

18

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Porc

enta

gem

de

jove

ns d

e 18

a 2

1 an

os

Evolução da porcentagem de jovens de 18 a 21 anos que nem estudam nem trabalham nem procuram trabalho

Mulheres que não estudam, não trabalham, não procuram trabalho e também não tem filho

Mulheres que não estudam, não trabalham, não procuram trabalho, não fazem afazeres domésticos e também não tem filho

Jovens que não estudam, não trabalham nem procuram trabalho

Jovens qão trabalham, ue não estudam, não procuram trabalho e também não fazem afazeres domésticos

13. Challenge: providing opportunities and coping with youth expectations

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The relation between youth and work: problems, solutions and the role of government

Is youth labor market insertion really a serious and new problem?

What is exactly the problem? Insufficient employment, low wages and productivity or high turnover?

These are problems for all or just for certain groups? The fact that youth have different needs and interests

(changing over time) isn’t a problem in itself. Labor markets just need to adapt accordingly. Why aren’t

available labor contracts adapting to the needs and interests of the youth?

If the gains of labor market experience are private, why adequate labor contracts do not solve them accordingly?

If stable labor relations generates externalities, why a general subsidy to youth employment would not be enough?