Idle Youth and Macroeconomics in Latin America

  •  Luis Rene Caceres    


This paper analyzes the macroeconomic repercussions of the existence of idle youth in a cross-section of Latin American countries. The results indicate that idle youth has a close association with the indices of gender inequality and governance, and with informality. By estimating a series of equations, it was possible to infer that idle youth exerts adverse effects on economic growth, the domestic saving rate and economic vulnerability. It is also reported that the prevention of idle youth rests on substantial increases in tax revenues so as to increase social spending.

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