This report presents the final resultsand conclusions of a multi-year program developed by a teamcomprising Bank staff and first-rate Peruvian researchers,which provides policy-relevant analysis of the constraintsto labor market entry for low income workers. Expandingemployment opportunities and addressing the deficits inskills of large segments of the labor force have become acentral concern for policy makers, the business community,academics, and the society at large in Peru. The study ofthe labor market and skills acquisition is not an emptyfield in Peru. Many local analysts have undertaken severalstudies of the education and training systems and theassociated labor market returns. However, up to now datalimitations have precluded detailed analyses of theconstraints of low-income workers, particularly youth, tomap their skills into suitable jobs, and to acquire theskills demanded by the labor market. This is, in fact,generally the case throughout Latin America and in manycountries in the developing world. It is hoped that thiseffort and the report can contribute to inform thediscussions of the future of social and employment policyamong policy makers and the Peruvian society at large.