IDEAS home Printed from https://ideas.repec.org/a/spr/joecin/v21y2023i2d10.1007_s10888-022-09561-7.html
   My bibliography  Save this article

Being poor and being NEET in Europe: Are these two sides of the same coin?

Author

Listed:
  • Chiara Mussida

    (Università Cattolica del Sacro Cuore)

  • Dario Sciulli

    (University of Chieti-Pescara)

Abstract

We implement a dynamic bivariate probit model to explore the possible relation between at-risk-of-poverty and NEET (Not in Employment, Education or Training) in 21 European countries using 2016–2019 European Union Statistics on Income and Living Conditions panel data. We identify genuine state dependence and account for possible feedback effects from past poverty to the NEET status. We also consider two alternative definitions of NEET, i.e. unemployed and inactive NEET and inactive NEET only. We find that both poverty and NEET are characterized by significant genuine state dependence. We also observe a vicious circle between the phenomena, especially when adopting the definition that includes unemployed and inactive NEETs. This suggests a leading role of unemployment in the detrimental effect of being NEET on poverty. We offer supplementary analyses and further insights on country heterogeneity by looking at the role of social protection expenditure. Finally, we stress that for young NEETS living outside of the family of origin, the NEET condition is not detrimental for poverty, conditional on the provision of adequate youth support.

Suggested Citation

  • Chiara Mussida & Dario Sciulli, 2023. "Being poor and being NEET in Europe: Are these two sides of the same coin?," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 21(2), pages 463-482, June.
    • Handle: RePEc:spr:joecin:v:21:y:2023:i:2:d:10.1007_s10888-022-09561-7
    DOI: 10.1007/s10888-022-09561-7
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10888-022-09561-7
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10888-022-09561-7?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Rabe-Hesketh, Sophia & Skrondal, Anders, 2013. "Avoiding biased versions of Wooldridge’s simple solution to the initial conditions problem," Economics Letters, Elsevier, vol. 120(2), pages 346-349.
    2. Chiara Mussida & Dario Sciulli, 2022. "The dynamics of poverty in Europe: what has changed after the great recession?," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 20(4), pages 915-937, December.
    3. Sara Ayllón, 2015. "Youth Poverty, Employment, and Leaving the Parental Home in Europe," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 61(4), pages 651-676, December.
    4. Martin Biewen, 2009. "Measuring state dependence in individual poverty histories when there is feedback to employment status and household composition," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 24(7), pages 1095-1116, November.
    5. Görlich, Dennis & Stepanok, Ignat & Al-Hussami, Fares, 2013. "Youth unemployment in Europe and the world: Causes, consequences and solutions," Kiel Policy Brief 59, Kiel Institute for the World Economy (IfW Kiel).
    6. Peter Saunders, 2002. "The Director and Indirect Effects of Unemployment on Poverty and Inequality," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 5(4), pages 507-530, December.
    7. Paul Gregg & Emma Tominey, 2004. "The Wage Scar from Youth Unemployment," The Centre for Market and Public Organisation 04/097, The Centre for Market and Public Organisation, University of Bristol, UK.
    8. Floro Ernesto Caroleo & Antonella Rocca & Paolo Mazzocchi & Claudio Quintano, 2020. "Being NEET in Europe Before and After the Economic Crisis: An Analysis of the Micro and Macro Determinants," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 149(3), pages 991-1024, June.
    9. Thomas A. Mroz & Timothy H. Savage, 2006. "The Long-Term Effects of Youth Unemployment," Journal of Human Resources, University of Wisconsin Press, vol. 41(2).
    10. Misbah Tanveer Choudhry & Enrico Marelli & Marcello Signorelli, 2012. "Youth unemployment rate and impact of financial crises," International Journal of Manpower, Emerald Group Publishing Limited, vol. 33(1), pages 76-95, March.
    11. Luis Ayala & Olga Cantó & Juan G. Rodríguez, 2017. "Poverty and the business cycle: A regional panel data analysis for Spain using alternative measures of unemployment," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 15(1), pages 47-73, March.
    12. Misbah Tanveer Choudhry & Enrico Marelli & Marcello Signorelli, 2012. "Youth unemployment rate and impact of financial crises," International Journal of Manpower, Emerald Group Publishing Limited, vol. 33(1), pages 76-95, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Claudia Petrescu & Bogdan Voicu & Christin Heinz-Fischer & Jale Tosun, 2024. "Conceiving of and politically responding to NEETs in Europe: a scoping review," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-13, December.
    2. Kawecka Magdalena, 2023. "Evaluation of the Labour Market Situation of Young People in EU Countries – The Multiple Regression Approach," Econometrics. Advances in Applied Data Analysis, Sciendo, vol. 27(3), pages 35-58, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mussida, Chiara & Sciulli, Dario, 2023. "The evolution of income distribution and disability in Europe," Structural Change and Economic Dynamics, Elsevier, vol. 66(C), pages 29-38.
    2. Hans Dietrich, 2013. "Youth unemployment in the period 2001–2010 and the European crisis – looking at the empirical evidence," Transfer: European Review of Labour and Research, , vol. 19(3), pages 305-324, August.
    3. Yekaterina Chzhen & Dominic Richardson, 2014. "Young People (not) in the Labour Market in Rich Countries during the Great Recession," Papers inwopa726, Innocenti Working Papers.
    4. Floro Ernesto Caroleo & Antonella Rocca & Paolo Mazzocchi & Claudio Quintano, 2020. "Being NEET in Europe Before and After the Economic Crisis: An Analysis of the Micro and Macro Determinants," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 149(3), pages 991-1024, June.
    5. Chiara Mussida & Dario Sciulli, 2023. "Childbirth and poverty in Europe: A dynamic bivariate approach," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 69(1), pages 34-59, March.
    6. Chiara Mussida & Dario Sciulli, 2022. "The dynamics of poverty in Europe: what has changed after the great recession?," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 20(4), pages 915-937, December.
    7. Sara Ayllón & András Gábos, 2017. "The Interrelationships between the Europe 2020 Poverty and Social Exclusion Indicators," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 130(3), pages 1025-1049, February.
    8. P. Varsha Pramod & Remya Ramachandran, 2023. "Youth employment for inclusive growth: a review and research agenda in global perspective with special reference to India," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 13(1), pages 1-16, December.
    9. Sara Ayllón, 2015. "Youth Poverty, Employment, and Leaving the Parental Home in Europe," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 61(4), pages 651-676, December.
    10. Prieto Suarez, Joaquin, 2021. "Poverty traps and affluence shields: modelling the persistence of income position in Chile," LSE Research Online Documents on Economics 110719, London School of Economics and Political Science, LSE Library.
    11. Luis René Cáceres, 2021. "Youth Unemployment and Underdevelopment in Honduras," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 13(2), pages 1-61, February.
    12. Picchio, Matteo & van Ours, Jan C., 2013. "Retaining through training even for older workers," Economics of Education Review, Elsevier, vol. 32(C), pages 29-48.
    13. Vespignani, Joaquin & Yanotti, Maria, 2020. "COVID-19 and Tasmanian youth unemployment: a policy recommendation," Working Papers 2020-07, University of Tasmania, Tasmanian School of Business and Economics.
    14. Sebastian Königs, 2013. "The Dynamics of Social Assistance Benefit Receipt in Germany: State Dependence Before and After the Hartz Reforms," OECD Social, Employment and Migration Working Papers 136, OECD Publishing.
    15. Manudeep Bhuller & Christian N. Brinch & Sebastian Königs, 2017. "Time Aggregation and State Dependence in Welfare Receipt," Economic Journal, Royal Economic Society, vol. 127(604), pages 1833-1873, September.
    16. Marios Michaelides & Peter Mueser & Jeffrey Smith, 2019. "Youth Unemployment and U.S. Job Search Assistance Policy during the Great Recession," University of Cyprus Working Papers in Economics 13-2019, University of Cyprus Department of Economics.
    17. Olga Cantó & Inmaculada Cebrián & Gloria Moreno, 2019. "Household precariousness and youth living arrangements in Spain: evidence for a complete business cycle," Working Papers 499, ECINEQ, Society for the Study of Economic Inequality.
    18. Enrico Fabrizi & Chiara Mussida, 2020. "Assessing poverty persistence in households with children," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 18(4), pages 551-569, December.
    19. Dunsch, Sophie, 2015. "Okun's law and youth unemployment in Germany and Poland," Discussion Papers 373, European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics.
    20. Elena Giarda & Gloria Moroni, 2018. "The Degree of Poverty Persistence and the Role of Regional Disparities in Italy in Comparison with France, Spain and the UK," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 136(1), pages 163-202, February.

    More about this item

    Keywords

    Poverty; NEET; Youth; Persistence; Europe;
    All these keywords.

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:joecin:v:21:y:2023:i:2:d:10.1007_s10888-022-09561-7. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.