Youth unemployment in Colombia: Does education matter?

Abstract

Young people face unique obstacles in their search for a productive work life, and more frequently than adults. Employment indicators for young people—such as unemployment rate, precarious employment, income, among others—are significantly worse than those of adults. One of the main factors of youth unemployment is the mismatch of competencies: over-education and over-skilling coexist with under-education and lack of skills. This article analyzes the factors that affect youth unemployment rate in Colombia. Particular attention is paid to the role of education. The main findings confirm the importance of education in achieving better quality jobs in terms of labor formality, but not in the probability of being employed.