Inequality in terms of access to employment or wages among young people is highest in India and Peru.

While there are many studies that look at well-being at work, few focus on low- and middle-income countries.

A team of economists from the Universities of Birmingham and East Anglia in England followed 12,000 young people aged 8 to 22 from India, Ethiopia, Peru and Vietnam.

The purpose of this work, published in the journal Development Policy Review, was to understand what factors might influence well-being at work: the nature of the job, the conditions under which it is performed, wages, social pride, family obligations, etc.

The results, based on data from a longitudinal cohort survey on child poverty, show disparities between the four countries studied.

In total, 78% of youth were employed at age 22, with men employed at a higher proportion (86% versus 71% of women).

The Gini statistical coefficient of income-based wage inequality calculated for the four countries shows that, among youth in this sample, inequality is highest in India (0.615) and Peru (0.537) and lowest in Vietnam (0.387) and Ethiopia (0.512).

The World Bank’s 2020 estimates of the income share of the richest 10% also indicate that income distribution is most unequal in Peru (32.1%) and India (31.7%) and most equal in Vietnam (27.5%). Vietnam is notably the country with the highest rate of youth employment.

“Not being in employment may reflect the up and down nature of informal work as well as personal circumstances such as family caring where gender roles are important,” write the study authors.

Among those who were unemployed, 43% of women reported that they had not looked for work in order to be able to care for the home and/or children.

Young women were also more likely to report having children (35% of women vs. 9% of men).

A lack of “good jobs”

But even among the young who are employed, working is not always synonymous with well-being.

In all countries, being self-employed or working for someone else is associated with lower well-being than being employed by a private company, a cooperative or a public and/or governmental organisation.

Purchasing power also plays a major role in terms of well-being, especially the possession of “consumer durables” (televisions, telephones, bicycles, cars, etc.).

“Our results highlight the importance of the quality of work for the well-being of young people in low-and middle-income countries.

The findings strengthen support for the argument that not all jobs are ‘good jobs’ that “provide greater wellbeing to the people who hold them,” outline the researchers.

The study also notes the strong negative impact in country contexts where lives, especially those of children, may be vulnerable due to limited social protection, unequal access to wealth, and exposure to extreme shocks from famine and conflict.

“Employment policies aimed at young people need to target those who are marginalised by labour market structures that tend to reinforce the advantages of the more educated and those from wealthier backgrounds.

Targeted employment and training programmes can help to provide young people with skills and experience that enhance their productivity and employability,” states Fiona Carmichael, Professor of Labour Economics at the University of Birmingham and study co-author.