Give Youth a Chance: An Agenda for Action GLOSSARY

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1 Give Youth a Chance: An Agenda for Action GLOSSARY This document defines over 45 concepts used by the MIF Youth Employment and Entrepreneurship Agenda. These concepts are divided into the 6 following sections: (I) Beneficiaries, (II) Skills, (iii) Education, (iv) Employment, (V) Entrepreneurship, and (VI) Other key concepts. (I) BENEFICIARIES Youth: People between the ages of 15 and The concept of youth differs from the concept of young people, which is used to refer to the composite age range of years old. In practice, the terms adolescent, youth and young people tend to be used interchangeably. Within this category, and according to the different social, psychological, and health situations faced by the person, the following sub-divisions by age are made: (i) puberty, initial or early adolescence, initial youth (10-14 years old), (ii) middle or late adolescence, intermediate youth (15-19), and (iii) full youth (20-24). 2 Age ranges are estimates; different organizations and governments adopt their own definitions and age limits for children, adolescents, young people and youth. For the MIF, "youth" encompasses the group of people between 16 and 30 years old. At-risk youth 3 : Young people involved, or at risk of getting involved, in risky behaviors (dropping out of school, neither working nor studying, teen pregnancy, delinquency, substance abuse, etc.). Poor and vulnerable youth 4 : Young people who, individually or as a family, do not have the resources to meet their basic needs, i.e., they have little or no access to: (i) housing that ensures minimum standards of habitability, (ii) basic services that ensure an adequate level of health, (iii) basic education, and (iv) financial ability to cover the basic family basket. This group is also referred to as poor and low-income youth. Disadvantaged youth 5 : Young people who are more likely to be marginalized and excluded as compared to other youth. The term "disadvantaged" takes into consideration economic factors (such as income level and lack of experience and/or knowledge of the formal labor market), social factors (such as sex, race, ethnicity or migrant status), and geographic isolation, which hinders access to quality education and employment opportunities. This group is also referred to as "vulnerable youth." 6 1 UN, 1985; ILO, WHO, MIF, As cited in A Renewed MIF Vision: The Next 10 Years, 2013, vulnerable refers to populations who earn between US$4-10 a day and are at high risk of falling back into poverty. Definition from Ferreira, et.al. Economic Mobility and the Rise of the Latin American Middle Class, World Bank, ILO, See the definition of vulnerability in Section VI: Other key concepts. 1

2 NEET 7 : Youth who are not in employment, education, or training. NININI 8 : Youth who are not in education or employment and are not looking for a job. The estimated number of NEET or NININI serves as a complementary measure of a country s youth unemployment rate; it signals the number of young people who could enter the labor market or the educational system. In some countries, these two concepts can have a negative connotation. In that case, the term "opportunity youth" 9 is increasingly being used to refer to this group. The latter acknowledges the untapped potential that these young people represent to their countries socioeconomic growth. Program dropout: Youth who drop out of a project s activities, for whichever reason, even if related to employment or return to school. Discouraged youth 10 : Youth who are physically and mentally fit to work, but do not have a job or seek one (and therefore cannot be classified as unemployed) because they feel that there are no jobs available to them. The term discouraged implies a feeling of abandonment. Discouraged youth have given up the hope of finding a job for reasons such as feeling that s/he lacks the proper qualifications, does not know where or how to look for a job, or feels that there is no suitable employment available. It could be said that discouraged youth are involuntarily inactive. Working poor 11 : A person who, in spite of being employed, has a consumption or income level below the international or national poverty line. (II) SKILLS Life or basic skills 12 : Skills related to behaviors, or that arise from personality traits. These skills can be divided into two types: cognitive and non-cognitive skills. Cognitive skills are related to (a) cognition (related to a person s IQ), and (b) knowledge (mathematics, language) which enables academic learning (e.g. specific skills such as recognizing and implementing information obtained during an induction process; structuring ideas clearly; recognizing and locating a company s documents; recognizing and evaluating their skills). Non-cognitive skills include: (a) interpersonal skills (e.g., establishing verbal communication, responding to verbal instructions accurately, listening sympathetically, establishing clear communication for group work), (b) psychomotor skills (e.g., vocalizing clearly, having safe body language, coordinating movements), and (c) attitudes and values, also referred to as "soft skills" (e.g., self-assessing possibilities accurately and objectively, having initiative, positively assessing skills, being entrepreneurial, honest, punctual, clean, taking care of one s personal image). 7 Based on the definition of the Sociometro BID 8 Based on the definition of the Sociometro BID 9 FSG, ILO, ILO, PAHO,

3 Specific Skills (technical or functional) 13 : They include specific knowledge and skills to perform a concrete task or function. Supply and demand skills gap 14 : Gap between the skills possessed by job seekers and those required by employers. (III) EDUCATION Education 15 : Organized and sustained communication designed to bring about learning. - Formal education: education that is institutionalized, intentional and planned through public organizations and recognized private bodies, which together constitute the formal education system of a country. - Non-formal education: education that is institutionalized, intentional and planned by an education provider. The defining characteristic of non-formal education is that it is an addition, alternative and/or complement to formal education within the process of lifelong learning of individuals. - Vocational education: education programs that are designed for learners to acquire the knowledge, skills, and competencies specific to a particular occupation, trade, or class of occupations or trades. Such programs may have work-based components (e.g. apprenticeships, dual-system education programs). Coverage: The proportion of students served in an educational level relative to the demand. Graduation efficiency 16 : The estimated number of students who graduate from a certain level or type of education in a given school year for every 100 new students enrolled at the selected educational level or type. This helps to understand how many students are finishing a particular grade on time. School dropout: The percentage of students who drop out of school during the school year (intracurricular) and/or between years, i.e., finish one year but do not return to begin a new school year (intercurricular). It is the combination of both types of dropouts. Certification (of competences) 17 : The process of formally validating knowledge, know-how and/or competencies acquired by an individual, following a standard assessment procedure. Certificates or diplomas are issued by accredited awarding bodies. Vocational training 18 : Services and activities aimed to support people, of any age or in any moment of their lives, to make education, training and employment choices, and manage their careers. 13 IDB, Adapted from the IDB definition, UNESCO, International Standard Classification of Education (ISCED), 1997 y iavinculo.pdf 17 European Centre for the Development of Vocational Training (CEDEFOP),

4 School-to-work transition 19 : The passage of a young person from the end of schooling to the first regular or satisfactory job. The young person is considered: - Transited : when s/he is currently employed in: (i) a regular and satisfactory job; (ii) a regular but non-satisfactory job; (iii) a satisfactory but temporary job; or (iv) in satisfactory selfemployment. - In transition : when s/he has one of the following statuses: (i) currently unemployed; (ii) currently employed (wage & salaried worker) with no contract; (iii) currently employed in a temporary and non-satisfactory job; (iv) currently self-employed and unsatisfied; or (v) currently inactive and not in school, with an aim to look for work later. - Not yet transited : when s/he is in either of the following situations: (i) still in school; or (ii) currently inactive and not in school, with no intention of looking for work. Work-to-education transition: The return of a young person, who dropped out of the education system, to school. This usually happens when the young person realizes that s/he has to go back to school to improve her/his employment possibilities. Support/activities socio-labor: Activities aimed at promoting opportunities related to learning and the transition to the labor market. Occupational project 20 : An action plan to improve a young person s situation in relation to employment and skills development. Building an occupational project is a dynamic and open process that can be re-planned and adapted to a person s life situation. It includes the recognition of one s own abilities, knowledge and skills (acquired in academic and/or work environments, or in life), the assessment of the constraints that may impact the opportunities for career development, the analysis of the productive context and the real possibilities of the labor market in their context and requirements. (IV) EMPLOYMENT Labor intermediation 21 : Mechanisms and institutions that help to match jobs seekers with employers, connecting labor supply with skills demand. It can include job placement services and/or career coaching. Job placement 22 : The effective articulation between labor supply and demand. Job placement services help people, many of whom may be socially excluded, get integrated into the labor market. 18 OECD, ILO, ILO/CINTERFOR, RTI, Adapted from the IDB-MIF definition,

5 Employability: Knowledge, professional competencies, and know-how that are applied in a specific work context. Employed: People who have worked at least one hour during a specified reference period (usually, the week before the survey takes place), or who have a job, but have not worked for extraordinary reasons (sickness, strikes, holidays). The self-employed are considered as employed if they are temporally absent from their work during the reference period, but their enterprise continues to function. Unemployed 23 : An economically active person who, during a specified short reference period, was: a) without work; b) currently available to work; and c) actively seeking work through concrete actions. This concept includes both previously employed people who are looking for work (unemployed) and people who are looking for a job for the first time (aspirant), who are outside of the labor market, want a job, have actively looked for a job within a four-week reference period and are available to start working within the next 15 days; or who are outside of the labor market and have accepted a job that will start within the next 15 days. Underemployed 24 : Person who works less than 30 hours a week and is available and wants to work more time. Hidden unemployment 25 : Person who has a part-time job because he/she could not find a more suitable position or because he/she became discouraged and stopped looking for a job. Economically active population 26 : Comprises all people of either sex who furnish the supply of labor for the production of goods and services during a specified time-reference period. The concept of usually active population is used to measure a long reference period such as a year, and currently active population, or equivalently, the labor force, to measure short reference periods such as one day or one week. Economically inactive population: Comprises all people who are of working-age, but do not participate in the labor market, i.e., they are not working or looking for a job. Vulnerable employment 27 : People who are employed under relatively precarious circumstances, which puts them more at risk to the impact of economic downturns. Usually there is a strong connection between vulnerable employment and poverty (with no formal employment arrangements or access to social protection benefits or programs). Decent work for youth 28 : Is defined as work that meets the following criteria: (i) has contractual arrangements that meet the expectations of the young worker; (ii) qualifies as neither overemployment nor underemployment; (iii) pays at or above the average monthly wage rate of young workers; (iv) 23 IDB Sociometro 24 IDB Sociometro 25 ILO 26 ILO, Laborsta 27 ILO, Adapted from the ILO definition,

6 offers satisfactory job security (at least, a three-month contract); (v) offers the possibility for worker participation in labor unions or associations of employer organizations; and (vi) offers benefits, among which are paid sick and annual leave. Employment with benefits: Employment that includes at least one of the following benefits: health insurance, annual leave, paid sick leave, and maternity/paternity/adoption leave. It could be considered formal employment or not. Satisfactory employment 29 : It is a subjective concept, based on the jobholder s self-assessment. It implies a job that the respondent considers to fit his desired employment path at that moment in time. The contrary is termed non-satisfactory employment, implying a sense of dissatisfaction with the job. Regular employment 30 : Employment that includes a stable contract with the employer organization (permanent or of at least one year duration), which is also responsible for paying taxes and other social security contributions and/or in which the contractual relation is compliant with national labor laws. Internship 31 : Short-term work experience during which the learner (intern) receives training and gains experience in a specific career area. Internships vary in duration and can be paid or unpaid. A good internship includes at least three of the following: (i) contractual agreement (written), (ii) objectives and clear tasks, (iii) social protection, and/or (iv) mentoring and supervision. Qualifying labor experience: Refers to internships that have a minimum number of monthly hours (ideally, not less than 80 hours per month, but can vary by context). Can be paid or unpaid. Informal employment 32 : A concept used to refer to those jobs that generally lack basic social or legal protections or employment benefits. The concepts informal employment and informal sector refer to different aspects of the informalization of employment. Informal employment is a job-based concept, and can happen in the formal or informal sector, or at home. Informal sector refers to non-official commercial activities that lead to fiscal evasion, and non-compliance with labor and other government and institutional regulations. By and large, enterprises included in this sector are not formally constituted or registered. 33 Employment in the informal sector refers to the total number of jobs within the enterprises from this same sector ILO, ILO, Adapted from the ILO definition, ILO, Adapted from the ILO and World Bank definitions 34 ILO,

7 Self-employed 35 : A person whose remuneration is directly dependent upon the profits (or the potential for profits) derived from the goods and services produced (where own consumption is considered to be part of profits), and has hired one or more salaried employees on a continuous basis. He/she can be working in the formal or informal sector. Unemployment rate: Percentage of the economically active population that is unemployed. Youth unemployment rate 36 : The extent to which youth are available to work and are seeking employment in a given economy. As youth often have little or no work experience, they usually suffer higher unemployment rates and have fewer employment opportunities (often in jobs with low pay and poor social protection) as compared with adults. Youth employment-to-population ratio 37 : Share of youth unemployment rate to adult unemployment rate. The ratio allows one to assess the lack of employment among youth compared with older job seekers and thus hints at whether the economy is characterized more by demand deficiencies particular to first-time jobseekers (i.e. an inability to absorb labor market entrants) or to turnover and retrenchment of persons with jobs. (V) ENTREPRENEURSHIP Entrepreneur 38 : A person that is (or wants to be) self-employed, or that started (or wants to start) a new business in the formal or informal sector to generate income. Necessity-driven entrepreneurs 39 : Entrepreneurs who have few or no other income generation or employment opportunities, and thus become entrepreneurs to sustain their livelihood by necessity rather than choice. Opportunity-driven entrepreneurs 40 : Entrepreneurs who pursue a perceived market opportunity and choose to start their own business, despite having the option of generating an income through employment elsewhere at the time of starting a business. Dynamic enterprise 41 : New or recent entrepreneurial ventures with potential to grow into at least a medium-size enterprise given that it has some competitive advantage. Often such enterprises are related to technology. Dynamic enterprises operate under a logic of accumulation, generating a level of revenues far above those needed for the owners subsistence. Revenues are then invested into the company, to further its development. Dynamic enterprises have growth levels above the sector s average. Dynamic entrepreneurs are different from necessity-driven entrepreneurs or the self- 35 ILO, ILO, ILO, YBI, YBI, YBI, MIF,

8 employed, whose objectives are limited to covering the entrepreneur s and his/her family s subsistence, or to address the specific needs of selected disadvantaged social sectors. (VI) OTHER KEY CONCEPTS Empowerment 42 : Process of increasing the capacity and opportunities of individuals or groups to make choices for themselves and transform these choices into their desired actions and results. Collective Impact 43 : An approach to solve society s problems based on the idea that no organization alone can solve complex problems. A collective impact approach requires the commitment of a group of actors including government, civil society, business, and philanthropists- to coordinate their efforts towards a clearly defined goal. Collective impact initiatives share five components: common agenda, shared measurement, mutually reinforcing activities, continuous communication, and backbone organization. Systemic impact 44 : An objective that goes beyond the results of an individual intervention and instead involves a large-scale, sustainable change in the thinking or behavior of individuals, policy-makers, organizations or businesses. Vulnerability 45 : A set of non-idiosyncratic characteristics that create weaknesses, disadvantages, and/or problems for individuals, households or communities, impacting their performance or social mobility. Such characteristics stop or hinder actors capacities to adapt to different social scenarios. SOURCES - ILO, Decent Work Indicators: Concepts and Definitions, ILO, School-to-Work transition survey: A methodological Guide. Module 4: Key indicators of youth labour markets: Concepts, definitions and tabulations, ILO, School-to-work transition survey: Module 1: Basic concepts, roles and implementation process, UN, General Assembly, FSG, Collective impact for opportunity youth, RTI, Thematic study of MIF youth projects, ILO, Internships: A global emerging issue (.ppt), Available at: (Last seen: July 8th 2013) - Kabeer, N., The Conditions and Consequences of Choice: Reflections on the Measurement of Women Empowerment (No. 108). Geneva: United Nations Research Institute for Social Development, ILO, Global Employment Trends for Youth, Kabeer, FSG, MIF 45 ECLAC,

9 - YBI, Youth entrepreneurship: A contexts framework, IDB, How can we improve Latin American youth s job placement opportunities? Technical Note IDB-TN-305, IDB, Disconnected: Skills, Education and Employment in Latin America, OECD and the European Commission: Career guidance: A handbook for policy makers, WHO, Youth health: a challenge for society, MIF, Learning guide on dynamic entrepreneurs, ILO, Resolution concerning the International Classification of Status in Employment (ICSE-93), CEPAL: Vulnerabilidad y grupos vulnerables: un marco de referencia conceptual mirando a los jóvenes, 2001 (in Spanish only) - PAHO, Life Skills Approach to Child and Adolescent Healthy Human Development, BID-FOMIN, Programa Servicios Privados de Inserción Laboral, 2008 (presentación) - ILO, Increasing the employability of disadvantaged youth, ILO/CINTERFOR, Occupational project: A training methodology to improve employability, CEPAL, El método de las necesidades básicas insatisfechas (NBI) y sus aplicaciones en América Latina, 2001 (in Spanish only) 9