IEG EVALUATION 66223 ON YOUTH EMPLOYMENT FY01-11 APPROACH PAPER Report to the Board of Executive Directors from the Subcommittee Committee on Development Effectiveness Meeting of November 14, 2011 The Subcommittee (SC) of the Committee on Development Effectiveness (CODE) considered an Independent Evaluation Group (IEG) Approach Paper entitled IEG Evaluation on Youth Employment FY01-11 (CODE2011-0058). IEG commented that the proposed evaluation recognizes the significant cost that youth unemployment has for individuals and societies. The evaluation will take stock of international evidence on effectiveness of youth employment initiatives and will identify lessons from World Bank Group (WBG) support. It will use the Bank’s MILES framework, focusing on three aspects: skills development and individual attributes, labor market issues pertinent to youth, and firms’ demand for young workers in self-employment, while also recognizing the importance of macro-economic growth and social protection systems. The evaluation will draw from a number of sources including a review of the Bank’ lending portfolio, economic and sector work and country case studies. The analysis will examine where WBG support has reached youth, including young women and poor and disabled young people. Overall findings will help identify factors that affect the success of interventions and inform future lending, technical advice as well as policy dialogue, including the operationalization of the 2013 World Development Report (WDR) on Jobs. Management acknowledged IEG’s cooperation in sharing an early draft for comments and appreciated the opportunity to provide additional comments to the Approach Paper. First, it noted the need to better define the outcomes of the evaluation by identifying the indicators that will measure success beyond available labor market opportunities. Second, it agreed with the use of the MILES framework but added that it would be important to define how alternative polices are expected to affect outcomes of interest as well as how these policies interact. In addition, it asked that further thought be given to skills development, including not just vocational training but also on the job training and entrepreneurship programs. Members noted that the evaluation will be highly relevant, particularly for regions such as Africa and for fragile and conflict-affected states. A member noted that the WBG does not have a specific strategy for youth employment. Members remarked as to the application of the MILES framework to youth employment as well as to low-income countries. They asked that the evaluation benefit fully from potential synergies with other initiatives and evaluations1, as well as encouraged IEG to ensure appropriate sequencing and messaging with other reports, such as the 2013 WDR. Members also suggested that feedback from un-employed stakeholders and youth organizations will be useful. They queried as to the correct labor market policies and interventions to ensure quality and success. In that sense, they encouraged IEG to focus on the private sector role (e.g. IFC, investment climate), vocational training and gender issues. In addition, they noted the importance of the urban-rural divide, formal vs. informal sectors, macro policy, social protection and linkages to security issues and remittances in varied regions. The Chair asked that further focus be given to the impact of minimum wage on employment as well as to probe which WBG polices (i.e. education) impacted youth employment interventions. IEG thanked members and management for the input, and indicated that several suggestions from the discussion would be reflected in the evaluation. IEG clarified that the outcome evaluation will be objective- based, comparing WBG project implementation against their stated objectives. IEG also noted that it is taking a comprehensive approach to skills development and will review these projects against their objectives and international evidence on success factors.  This report is not an approved record. 1 e.g. Realizing the Potential of Africa’s Youth, Report of the Africa Commission, 2009 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank Group authorization.