Similarly, because a young worker is likely to have less tenure than an adult worker, less company funds invested in them for training purposes and to have a temporary contract, it will be considered cheaper to let the younger worker go in times of economic downturns. Thus, young workers will be the “first out”.
The lack of job search expertise explanation. A young person often lacks both labor market information and job search experience. In many developing countries, it is only through informal placement methods – typically through family and friends – that a young person finds work.
Beyond the word of mouth approach through families and friends, they simply might not know how and where to look for work. Adults, on the other hand, might have the possibility of finding future work through references from previous employers or colleagues and are more likely to know the “right” people.
The “shopping around” explanation. Another possibility is that youth might take longer to “shop around” for the right job, meaning they might wait longer to find work that suits their requirements. This, however, implies that a support structure, such as the family, exists to economically support them while they search for work.
In low-income countries, this support structure does not exist for the majority of young people and as a result, a young person simply cannot afford to be unemployed and is likely to take whatever work becomes available, regardless of working conditions or whether or not the job fits his/her education or skills-base.
