Young people’s incomes can be very volatile during their transition from education to work and first years in the labour market, due to fluctuations in earnings, limited savings and, depending on the country, lack of access to government support. Support for young people through social protection systems varies across countries and depends on age-related and other eligibility rules of the different social protection systems countries have in place. However, income replacement programmes alone may leave a significant portion of young individuals in poverty; they can also reduce incentives for work when benefits are generous and earning prospects are low. Supplementary measures, such as housing and family benefits, health services and education support, combined with high-quality active labour market policies are indispensable to promote self-sufficiency through secure and stable employment. This policy paper presents an overview of gaps in social protection for young people across OECD countries and discusses the importance of strong active labour market policies.
