The Demand for, and Impact of, Youth Internships: Evidence from a Randomized Experiment in Yemen

22 Pages Posted: 20 Apr 2016

See all articles by David J. McKenzie

David J. McKenzie

World Bank - Development Research Group (DECRG); IZA Institute of Labor Economics

Nabila Assaf

World Bank

Ana P. Cusolito

World Bank

Multiple version iconThere are 2 versions of this paper

Date Written: October 29, 2015

Abstract

This paper evaluates a youth internship program in the Republic of Yemen that provided firms with a 50 percent subsidy to hire recent graduates of universities and vocational schools. The first round of the program took place in 2014 and required both firms and youth to apply for the program. The paper examines the demand for such a program, and finds that in the context of an economy facing substantial political and economic uncertainty, it appears there is an oversupply of graduates in science, technology, engineering, and mathematics, and a relative undersupply of graduates in marketing and business. Conditional on the types of graduates firms were looking to hire as interns, applicants were then randomly chosen for the program. Receiving an internship resulted in an almost doubling of work experience in 2014, and a 73 percent increase in income during this period compared with the control group. A short-term follow-up survey conducted just as civil conflict was breaking out shows that internship recipients had better employment outcomes than the control group in the first five months after the program ended.

Keywords: Educational Populations, Education For All, Education for Development (superceded)

Suggested Citation

McKenzie, David John and Assaf, Nabila and Cusolito, Ana P., The Demand for, and Impact of, Youth Internships: Evidence from a Randomized Experiment in Yemen (October 29, 2015). World Bank Policy Research Working Paper No. 7463. Available at SSRN: https://ssrn.com/abstract=2683688

David John McKenzie

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Nabila Assaf

World Bank

1818 H Street, NW
Washington, DC 20433
United States

Ana P. Cusolito (Contact Author)

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

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