Youth, Labor Market Dynamics, and the Role of Entrepreneurship in Bhutan

Carlos Alberto Coca Gamito and Silvia Garcia Mandico
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Carlos Alberto Coca Gamito: Asian Development Bank
Silvia Garcia Mandico: Asian Development Bank

No 799, ADB Economics Working Paper Series from Asian Development Bank

Abstract: Young people in Bhutan face rising rates of exclusion from employment, education, or training, and limited access to quality jobs, despite gains in education. Entrepreneurship is often viewed as an alternative pathway, but most youth-led ventures remain necessity-driven, informal, and short-lived. Using data from the 2018–2023 Labor Force Survey and the 2024 Jobs and Skills Survey, this paper examines youth entrepreneurship dynamics, including motivations, earnings, productivity, and sectoral patterns. Findings show that opportunity-driven entrepreneurs—especially young women—achieve higher earnings and productivity, but few business ventures by young people transition beyond the early stages. A shift from necessity-driven to opportunity-driven entrepreneurship could yield economic gains equivalent to 1.4% of gross domestic product. Realizing this potential requires gender-responsive, stage-specific support and embedding entrepreneurship within a broader strategy for decent work and inclusive growth.

Keywords: youth employment; entrepreneurship; decent work; gender and labor market; labor market dynamics (search for similar items in EconPapers)
JEL-codes: J13 J21 J24 L26 O17 (search for similar items in EconPapers)
Pages: 34
Date: 2025-09-12
New Economics Papers: this item is included in nep-ent, nep-iue, nep-lma and nep-sbm
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