approach already exists in Kenya as a scheme called Jua Kali (small enterprise). The scheme works by affording anyone who is eligible to training a voucher than can be cashed in for training voucher of their choice. The intention is to enable recipients to buy training on the open market. The effect of this is not only on the increased competition in the market amongst training providers but young people can effectively buy the skills that would improve their employability (Meth 2011; September, 2007). Further, if these vouchers are aligned with the expanding sectors of the economy, then misalignment of skills and work is also minimized.

8.4 Labour legislation: the appropriateness of the youth wage subsidy
Labour market interventions must serve the purpose of enhancing incentives for employers to hire, up-skill and train young people. The International Labour Organisation (2006) reinforces the need to review labour legislation in South Africa. When the cost of dismissing employees from work is high and thus reducing the number of layoffs in a firm, this has the effect of locking out new firms from that industry and reduces access to entry into the labour market for new young entrants. Stricter employment protection laws lead to lower wages and lower employment rates for young people. The debate about the effectiveness of labour legislation in South Africa is broad and complex. For purposes of this paper, we will only consider the debate as it relates to the youth wage subsidy.
The proposal for a youth wage subsidy in South Africa is not new and has in fact garnered significant political attention and debate amongst its supporters and detractors. The aim of this paper is not to get entangled in the political noise surrounding these policy option save to propose it as a viable option.
Burns et al (2010) captures the benefits of a youth wage subsidies in three simple arguments. First, subsidy would reduce the perceived financial cost, held by employers, about the potential young workers in relation to their potential productivity. Secondly, the subsidy can act as an incentive to encourage employers to train young workers. Thirdly, the subsidy is likely to encourage more active job searching because young people would believe that with effort it is possible to find work (Burns, 2010).
A youth subsidy alone will not solve youth unemployment but it can contribute to young people gaining work experience, accessing decent jobs in the formal economy, and improving their employment prospects in the