Karma Lhaki#103610BA-Developmental EconomicsURG302Research Topic: Youth Unemployment in ThimphuResearch Question: How do the access to information on job affect the duration of unemployment among the youth in case of ThimphuRationalePopulation and Housing Census of Bhutan (PHCB) recorded 7,865 are unemployed in 2005. Although the overall unemployment rate has decline from 2.
5 percent in 2015 to 2.1 percent in 2016 as per the draft Labour Force Survey Report (LFSR) 2016 but youth unemployment rate has increased by 2.6 percent (Rinzin, 2017). According to (World Bank Group, 2018), the national poverty fell from 12 % in 2012 to 8% in 2017, yet the job challenges remained unaddressed, where youth unemployed increased from 10.
7% in 2015 to 13% in 2016 indicating that Bhutan still face the dilemma of unemployment. Among many challenges, youth unemployment is a serious issue.The Main objectives of this Study are:1. To Examine the relationship between access to information and duration of unemployment 2. To Examine the Effectiveness (Quality and Reliability) of the information.
Literature ReviewAccording to Bureau of Labour statistics defines unemployment as “the people who do not have a job, have actively looked for work in the past four weeks, and are currently available for work”. Previous research has shown that education has a substantial impact on labour market outcomes such as earnings and employment. According to (McQuaid & Raeside, 2014), the young and the old are the two largest age groups currently experiencing unemployment.
A study by (Jacob & Kleinert, 2008), found that young people (ages 18 to 24) who have fewer resources and limited work experiences are more likely to be unemployed. Other researchers have found that today’s youth place a lower value on work than those in the past, and this is likely because they recognize the limited availability of jobs. A report by (Lhaden, 2018), states that unemployment in Bhutan was more visible among urban, female, and relatively well-educated individuals, and youth unemployment had reached 9.9 % in 2013.Since then, actions were taken and jobs were created, either within the country or youths were sent to other countries to take up jobs. However, the country’s national (Rinzin, 2017), reports youth unemployment rate in Bhutan at 7.3 % to be one of the highest in the region.Urban unemployment rate is higher than rural area especially in Thimphu and partly in Paro where urban unemployment stands at 3.
5 percent, while rural unemployment is 1.5 percent (MAF, 2013). According to (MAF, 2013), Bhutan Living Standard Survey in the report found that the overall higher rate of youth unemployment found in urban area in 2012 and Bhutan Living Standard Survey (BLSS) also estimated unemployment among urban youth to be as high as 20.
2 percent for males and 29.5 percent for females. the majority of job seekers (57%) said they had been seeking work for more than a year, while 27 percent were unemployed for between six months and a year and those looking for work for one to six months comprised almost 12 percent of the sample, and those searching for less than a month accounted for only 3.5 percent (Khilji, 2014).
To determine the causes of variation between unemployment person in the length of time they are out of work is a matter of great importance, bearing as it does upon the design and effect of welfare policy (Lancaster, 1979). According to (Collier, 2003), the Theory of Job Search provides the theoretical basis for the analysis of labour market transitions using the process of worker separations and the timing of these separations also provides the conceptual framework for the analysis of unemployment spell lengths. The preference to analyse the duration aspect of unemployment is derived from considerations regarding economic welfare on other hand the frequency and average duration of unemployment reveal important information on the dispersion of unemployment across individuals. Increased duration of unemployment erodes individual incomes, depreciates human capital, and increases the inequality of employment opportunities and income distribution (Collier, 2003).
According to this theory, changes in mean unemployment duration simply reflect changes in the composition of job losers but on other hand there is some empirical evidence that workers who initially have a high probability of finding a job are less likely to find one if they have been unemployed for a long time (Abraham & Shimer, 2001). If skills waste during unemployment if long-term unemployment stigmatizes workers (Blanchard and Diamond 1994), or if the long-term unemployed lose contact with social networks (Granovetter 1974, Montgomery 1991) and so do not know where to look for good employment opportunities.This paper examines the relationship between an access to information and duration of unemployment on job. It will focus on the number of applications job seekers (unemployment youth) send to vacancies posted on the website as our measure of search effort. Long-duration job seekers tend to be older, non-employed, male job seekers who have separated from a long-tenured job (Faberman, 2016).
Methodology To better understand the relationship between youth unemployment duration and access to information on job in Thimphu. I will use data from the Ministry of Labour and Human Resources (MOLHR) Office which contains the population of school leavers aged 17 to 25 years entering unemployment in 2011 and 2016 respectively. For this Research stratified sampling will be used, whereas (Faberman, 2016), used SnagAJob online private job search website where job seekers browse information on the website at no cost and to apply to a job posting (vacancy), a job seeker must register with the website. Registration is free. At registration, job seekers provide their basic demographic and geographic information. Our data does not take into account young school leavers who find a job directly after their studies and who do not register at the unemployment office after graduating.
Moreover, it does not contain information on the actual exit destinations from unemployment. The survey methodology will be mixture of both Qualitative and Quantitative Method and Date Collection will be Primary Data and Secondary data and questionnaire will be used. All school leavers belong to the unemployment category “stage -1”, which means that they enter unemployment right after their studies or with a limited work period. The data comprises information on age, gender, region of residence, nationality and month of entrance into unemployment. BibliographyAbraham, K. G., & Shimer, R. (2001).
Bureau of Labor Statistics. Changes in Unemployment Duration.Collier, W. (2003). Unemployment Duration and Individual Heterogeneity.Faberman, R. J. (2016).
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Unemployed Youth Perception Survey. Lancaster, T. (1979). Econometric Methods for the Duration of Unemployment.
Lhaden, T. (2018). Has Bhutan’s Growth been jobless. MAF. (2013). Millennium Development Goals (MDG) Acceleration Framework:YOUTH EMPLOYMENT IN BHUTAN. McQuaid, R.
, ; Raeside, R. (2014). Multiple scarring effect of youth unemployment in UK. Rinzin, Y. C.
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