Youth unemployment is a problem in manydeveloping countries, where labor market opportunities maybe further squeezed by rapid rural migration into bigcities, the cost of higher education and job seekers'limited information about the best opportunities.Policymakers and aid organizations trying to reduce youthunemployment have a variety of approaches they can use,including vocational training programs to give job seekersnecessary skills to be employed. But what works best isstill not clear: should governments subsidize job trainingprograms for young adults? Should they limit subsidies topublic sector programs or include the private sector? Dogovernment-run and private institutions differ in theirability to attract students and prepare them to find a job?What roles do outside factors, such as distance to a school,play in a young adult's decision to enroll in atraining program? In Kenya, the World Bank supported aspecial voucher program for young adults to evaluate demandfor vocational training and the impact of training on jobseekers. The evaluation showed that offering young adultsvouchers that cover program costs does encourage youngadults to enroll, and that those who can use the voucher fora private training program are more likely to sign up andstay in school. The results of the study are in line withresearch done in Latin America, indicating the benefits ofmaking vocational training more widely available indeveloping countries. While further research of this programis planned in Kenya, the initial evaluation does show thatvouchers for vocational schools especially when privatesector schools are included can be an effective way to givejob seekers employable skills.
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