Abstract
The paper utilizes a cross-country panel of 83 developing countries to examine whether cohort size affects employment outcomes for youth. The results indicate that, within country, youth in smaller cohorts are significantly more likely to work and are much less likely to attend school. Among employed youth, those in smaller cohorts tend to work in more productive jobs ouside of agriculture and as wage employees. The effects of cohort size steadiliy diminish with age and largely disappear by age 40. This suggests that in the aggregate, the long-term benefits of more favorable initial jobs for smaller cohorts is negated by their reduced schooling. We conclude that reducing cohort size can create better jobs for those youth that choose to work, but is not an effective way to increase longer-term earnings potential.