Figure 6 - available via license: Creative Commons Attribution 4.0 International
Content may be subject to copyright.
Source publication
This paper analyzes the determinants and consequences of youth unemployment in Honduras. The study is based on the estimation of error correction models that express youth unemployment in terms of real sector variables. The results indicate that exports, remittances and self employment reduce youth unemployment, while the expansion of the service s...
Contexts in source publication
Context 1
... extreme openness has led to excessive growth of imports as a percentage of GDP, (hoimports), while exports as a percentage of output (hoexports), have shown a tendency to fall since the mid-1990s, the result of which has been large deficits in the trade account. The deficit in the trade account is explained by the contraction of the participations of the manufacturing and agricultural sectors in GDP, that is, by the deindustrialization and deagriculturization that has occurred in the Honduran economy since the 1990s, as was shown in Figure 2. Figure 6 shows the female, (hodesempleojovenfeme), and male, (hodesempleojovenmasc), youth unemployment rates in the period 1990-2018. These rates are higher than the unemployment rates of the population between 15 and 61 years old and show high volatility. ...
Context 2
... literature on female employment in the US has indicated that women have a competitive advantage over men in employment in the service sector, as they have "empathy, good character, and kindness", which are characteristics demanded in said sector (Cortes, Jaimovich, & Siu, 2018). What Figure 6 indicates is that in Honduras the "comparative advantage" of young women lies in the fact that they can be abruptly fired. The job instability of young women is reflected in the fact that Honduras had, in 2010, the highest percentage of female Neets in Latin America, which reached 42.8 percent ( de Hoyos, Popova, & Rogers, 2015), as well as the second-highest adolescent fertility rate, of 85.9 percent. ...
Context 3
... Journal of Economics and Finance Vol. 13, No. 2;2021 There is another angle to analyze the implications resulting from Neets, which is its association with irregular emigration, and hence with remittances. Figure 16 shows that there exists a positive association between the percentage of female Neets and remittances as a percentage of GDP, which means that remittances and irregular emigration, are originated in youth unemployment and in being in a situation of Neet. Thus, it is valid to argue that the prevention of youth unemployment would lead to reduce irregular emigation. ...
Context 4
... other words, countries that invest more in education have higher economic growth rates than countries that spend little. It should be mentioned that public spending on education as a percentage of GDP has a negative association with the percentage of female Neets in the Latin American countries, as can be seen in Figure 26. This indicates that by increasing spending on education it can be possible to obtain goals that have been elusive in the past, such as increases in the rate of economic growth and productivity, in exports, and private investment (Cá ceres, 2018). ...
Citations
... Note 2. This relationship that has been evidenced by Caceres (2021aCaceres ( , 2021b for Honduras and Guatemala. ...
This paper depicts three mechanisms through which fiscal policy affects economic growth in the Dominican Republic. The first mechanism rests on the evidence that increasing public expenditures on education leads to the reduction of adolescent fertility and the percentage of young females who neither study or work, which gives rise to increasing the ratio of female to male employees and thus increasing domestic savings and economic growth. The second mechanism consists of increasing social expenditures, which results in decreasing the underground economy and, thus, results in increased productivity, economic growth, and reduced violence. The third mechanism is based on the evidence that increasing education expenditures leads to the reduction of emigration and, thus, to the reduction of remittances, which in turn increases economic growth. The operation of these mechanisms is sustained by Figures that show that the postulated relationships exist in the Dominican Republic. The results imply first, that fiscal policy has important effects that have often been overlooked, such as the reductions in school desertion, the percentages of female and male youth that neither work nor study, and the decrease in informality in the Dominican Republic. And second, a valid development strategy resides in increasing tax revenues to support the expansion of social services.
... A similar result was reported by Caceres (2020) with 2017 data from a cross-section of 18 Latin American countries. Caceres (2021aCaceres ( , 2021b has presented results for Honduras and Guatemala, showing that female-to-male employment ratios exert positive impacts on domestic savings, while the female-to-male unemployment ratio has negative effects. ...
... Given that one of the main determinants of deindustrialization is the reduction of import tariffs (Caceres, 2021a(Caceres, , 2121b, it can be seen in Figure 15 that as tariffs fell, the female suicide rate increased. Figure 15. ...
The objective of this article is to analyze, in the Dominican Republic, the impact of monetary policy on labor market variables disaggregated by gender. The results indicate that the expansion of credit and money favor the growth of female employment and female participation to a greater degree than male, which leads to an increase in the ratio of female to male employment and leads to an increase in domestic savings. and economic growth. It is shown that the female-to-male employment ratio reduces external vulnerability and inflation, homicide and suicide rates, and is a mechanism for the transmission of monetary policies.
... International Journal of Economics and Finance Vol. 13, No. 1;2021 trend and begins to fall in 2004, to start to grow again in 2013 but in 2018 its value was around three percentage points lower than the average value between 1990 and 2012. This indicates that a loss of female employment has occurred in Guatemala.The ratio of male employment to population shows a declining trend in the period 1990 -2010; it started to recover in 2012, and at the end of the period it reached the early 1990's values. ...
... International Journal of Economics and Finance Vol. 13, No. 1;2021 The results showed that the percentage of female Neets lowers the ratio of employment to population; other estimated equations showed that the percentages of female and male Neets had negative impacts on economic growth. ...
This paper analyzes the causes and consequences of the percentage of the youth population that is not working, in school or in traning, Neets, in Guatemala. The study rests on the estimation of regression equations that explain the percentage of Neet population in terms of variables associated with the labor market; other set of equations were estimated to assess the role that Neets have in the Guatemalan economy. The data employed was taken from the World Bank’s World Development Indicators. The results indicate that the percentage of female and male Neets decrease as the credit to the private sector increase; said percentage increases with the increase of the deficit in the trade balance and with the increase in youth unemployment. Another result is that the Neet population exert negative impacts on the employment to population ratio and on the rate of economic growth. These results are augmented by the analisis of the relationships existing between the percentages of Neets and economic growth, the number of homicides and the number of persons that are incarcerated using a cross section of 2010 data from 13 Latin American countries. The results presented in the paper should motivate policy makers in Guatemala and other countries to design and implement policies geared towards preventing that youth become Neets.
This work studies the social and demographic factors that influenced youth unemployment in the age group from 18 to 29 years old in Ecuador in 2019. The study includes logistic regression models with marginal effects to evaluate the probability of being unemployed. The results reveal that being a woman and afro, living in an urban area, and increasing the years of education raise the probability of being unemployed in the age group from 18 to 29 years old, while the probability is reduced by being a head of household or son-in-law/sister-in-law and not being single. The study shows that the Ecuadorian population faces vulnerability in the labor market, where differences in gender, ethnicity, and social factors determine the unemployment level. In particular, being "Afro-Ecuadorian, mulatto, or Black" highly increases the probability of being unemployed in Ecuador.
This study analyzes the determination of the deindustrialization process experienced by Mexico and the Central American countries, and the repercussions on employment, domestic savings, investment, and economic growth. The methodology consists of estimating VAR models with panel data from the 1990-2018 period. The results indicate that the percentage occupied by the manufacturing sector in GDP increases in the face of shocks to exports, investment, and the ratio of female to male salaried employment, and does not have a significant response to the increase in remittances. A measure of relative deindustrialization is introduced, defined as the ratio of the value-added of the manufacturing sector to imports, whose responses to shocks to exports and remittances are negative, but its response to salaried employment is positive. Faced with shocks to the ratio of female to male salaried employment, the responses of the domestic saving rate, per capita international reserves, and labor productivity was positive, but the response of the trade deficit was negative. These results show that deindustrialization must be analyzed in the context of the labor market of the countries and consider gender aspects.
The objective of this paper is to identify the variables that determine female and male youth unemployment rates, as well as female and male self-employment rates, in Mexico and Central American countries. The methodology of the analysis rests on the estimation of VAR models with panel data from the period 1990-2018. The results indicate that there are gender differences in the behaviour of unemployment and self-employment rates: remittances increase female unemployment, but not male unemployment; the human development index and economic growth rate reduce male unemployment, but not female unemployment. In addition, female and male self-employment rates fall with the rise in the human development index, but only the male one falls to rising economic growth. These results had not been reported in the literature. The paper also presents a review of labor market developments in Latin America associated with the Covid pandemic. The main recommendation from this paper is that social policies related to unemployment must take explicit steps to address the difficulties young women face in the labour market. This paper is original since there are very few studies of youth unemployment for Latin American countries; it is the first to be based on the estimation of VAR models. The work concludes with a number of policy recommendations that should be put in place to combat the “culture” of abuse and discrimination faced by women in the labour market.
