Much has been discussed about the policy that best contributes to the incorporation into the labor market of young workers. In this discussion, I liked to focus the question on three points of view, higher education, vocational or professional training or the promotion by the governments of entrepreneurship and self-employment of young people. Regarding university education, during the last half century it has been seen as a tool for social mobility. However, many countries with high rates of university graduates have high levels of youth unemployment and important percentages of graduates work below their qualifications, while inequalities in the labor market grow. I thank you in advance for your opinions.
Answer to your question is highly context dependent. Different situation e.g. in Germany and Italy, Spain. It would probably help to define concrete perspective (national/comparative). There are several studies about this problem from comparative perspective but they usually have specific selection of countries. My coleagues explored this during NEGOTIATE project. May be you can check their results.
Although there may not be a "best policy that contributes incorporation of young workers in the labor market, your brief summary identified one of the primary negatives of more years of education: "Many countries with high rates of university graduates have high rates of youth unemployment...." Why? 1. Years of government and education policies have blocked employers from creating jobs for the unemployed (e.g. minimum age to work, minimum wages, compulsory years of education); 2. Education depreciation (meaning employers now require more years of formal education to assume functional literacy and numeracy); 3. Maturing youth, having never been given responsibility (at home or on the job), thereby lack basic expectations in jobs or job creation (at basic menial jobs); 4. The unemployed youth have never been trained to work (more indicative of mid-to-upper income families); and 5. Educated youth fear business (what I refer to as busiphobia) by a lifetime (18-25 years) separation from it.
A 2008 World Bank study (referenced below) indicates in some studied countries the return per year of education occurs at the lowest education levels. Key to education benefiting a nation is matching demand for laborer skills with education. Non-government job creation is accomplished by skilled workers (whether they be in production, processing, marketing, or management). Regarding your specific topic, I released two books (2018 copyright referenced below) that supply background to your question. I will provide ten quotes from those books to clarify some of the five points above:
1.) Government education policy has been a negative to business job creation for well over a century, for example here is a quote from the late 1800s "Eggleston, Edward (Learning pg. 397), “A contemporary of U.S. President Abraham Lincoln, in 1889 wrote about Lincoln being self-taught: ‘Many boys and girls who have good schools and good books never learn to think for themselves.’”
2.) Government school policy (this includes pre-school replacing day-care, supplying books, art and musical instruments, and even food supplied at school which had historically been a parental responsibility): Wietgrefe, Gary (Culture pg. 75), “When government steps in to take care of children…parents have an excuse to shirk responsibility for parenting. Now in the twenty-first century, underdeveloped and developed countries consider teens and young adults ‘children’ and are defined as such on healthcare and other laws.”
3.) School system (by definition) does not match responsibility to train children. My quote paraphrased the Merrion Webster dictionary definition. See https://www.merriam-webster.com/dictionary/school%20system: Wietgrefe, Gary (Learning pg. 124), “The school system is a legal entity managing divisions of labor.”
4.) Government educational standardization: National standards stagnate youth innovation sacrificing effectiveness to prepare youth for making a living in business as adults. Wietgrefe, Gary (Learning pg. 127), “Schools are stagnant. By nature, stagnate systems are not as adept as the rest of society. Is it any wonder students follow teachers’ lead in fearing business technology? Technology is new. It is scary. Business is outside the system that has protected them.”
5.) Educators train to fear business: Wietgrefe, Gary (Learning pg. 33), “Many university professors (especially in research)…do not want someone contaminated by business, to pollute their isolated thoughts.”
6.) Young adults who have never worked: Experienced fears are more easily overcome than inexperienced fears. Wietgrefe, Gary (Learning pg. 159), “Compared to attending a few classes each week, brains are jolted from work’s impact. Fear sets in from what I will term (Busiphobia) ‘acquired business immunity”—resistance to business generated by a lifetime separation from it.”
7.) Businesses take risks whereas schools minimize risk into adulthood: Wietgrefe, Gary (Learning pg. 384),“Teachers, both men and women, avoid risk by taking a job that minimizes it…. Systems (i.e. school systems) that minimize risk are also training our young to minimize risk. Multigenerations have developed in school systems training the young (from age four to at least eighteen) to minimize risk.”
8.) Education work ethics vs. uneducated immigrants: Wietgrefe, Gary (Culture pg. 101), “Historically, education was for those who needed it—those who physically and mentally worked. Even with limited education, developing countries are supplying many of the world’s manufactured goods. A dwindling supply of young workers with slack work ethics will not be able to supply the wants of the population. Eventually, service needs will not be met, or immigrants will fill the void.”
9.) Service industries need servants: Social terminology creates a mental image that affects how an individual performs their job. The term "servant" historically has been considered an economic status beneath the level of an educated person. Education, for example, is a service. One social reason teachers demand more pay is that they do not want to be called servants. Government economic policies have a social vs. economic dilemma. With higher levels of education, economically advancing nations move to service economies. Wietgrefe, Gary (Culture pg. 192-193), “Servants are a valuable resource to society. Those with post-secondary education do not want to be called servants, but most support society through medical, financial, nutritional, recreational, hospitality, and government services.”
Thank you for bringing to the forefront a very pertinent topic. I will close with an ancient Chinese quote which remains relevant to today's government education and job creating policies.
10.) Youth need on-the-job training, not just education, to gain skills which propel national economic advancement. Xun Kaung, (paraphrased from 312-230 B.C.), (Culture pg. 179), “Tell me and I forget. Teach me and I remember. Involve me and I learn.”
References:
Fasih, Tazeen, "Linking Education Policy to Labor Market Outcomes", (2008), The World Bank, http://siteresources.worldbank.org/EDUCATION/Resources/278200-1099079877269/547664-1208379365576/DID_Labor_market_outcomes.pdf
Wietgrefe, Gary W., "Learning as it Influences the 21st Century", Relating to Ancient series, (2018), https://www.relatingtoancients.com/new-page-1/
Wietgrefe, Gary W., "Culture and the Mysterious Agent Changing It," Relating to Ancient series, (2018), https://www.relatingtoancients.com/learning-3/
The best plan is a plan (policy) that provides more options. Training in the broadest sense of the word, seems to be the best policy for youths. But training needs to be "credentialized" by a trust-worthy party. Better still if it's the crowd that does this instead of a invested-interest party. So "proof of work" has trumped "proof of stake" in education. "Can-do" is often what gets youth employed, not willingness to do. Because the later does not address the short term performance requirements of businesses
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