IDEAS home Printed from https://ideas.repec.org/a/spr/soinre/v149y2020i3d10.1007_s11205-020-02270-6.html
   My bibliography  Save this article

Being NEET in Europe Before and After the Economic Crisis: An Analysis of the Micro and Macro Determinants

Author

Listed:
  • Floro Ernesto Caroleo

    (University of Naples Parthenope)

  • Antonella Rocca

    (University of Naples Parthenope)

  • Paolo Mazzocchi

    (University of Naples Parthenope)

  • Claudio Quintano

    (University of Naples Parthenope)

Abstract

In this paper, we analyse the main determinants of the propensity to NEET status in a selection of European countries. The NEET rate is the share of young people, aged between 19 and 30 years, not in Employment, Education or Training. In treating the 19–24 and 25–30 cohorts separately, our hypothesis is that for the younger cohort NEET status is mainly influenced by the school-to-work transition while for the older cohort this status is primarily due to labour market functioning and institutional factors. We apply different specifications of multilevel models with binary outcomes accounting for both personal and macro-economic factors which afford advantages over simple logit models. Estimates refer to 2007 and 2016 in order to verify how the economic crisis changed NEET status. The results confirm our hypothesis, highlighting the crucial role on the NEET propensity of the school-to-work transition in the first approach to the labour market, but also the strong influence of long-term unemployment, confirming the structural nature of the NEET phenomenon especially in countries where NEET levels remain high even during times of economic recovery.

Suggested Citation

  • 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.
    • Handle: RePEc:spr:soinre:v:149:y:2020:i:3:d:10.1007_s11205-020-02270-6
    DOI: 10.1007/s11205-020-02270-6
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11205-020-02270-6
    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/s11205-020-02270-6?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. Floro Ernesto Caroleo & Elvira Ciociano & Sergio Destefanis, 2017. "Youth Labour-Market Performance, Institutions and Vet Systems: A Cross-Country Analysis," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 3(1), pages 39-69, March.
    2. Juan F. Jimeno & Diego Rodríguez-Palenzuela, "undated". "Youth unemployment in the OECD: Demographic shifts, labour market institutions, and macroeconomic shocks," Working Papers 2002-15, FEDEA.
    3. Quintini, Glenda & Martin, John P. & Martin, Sébastien, 2007. "The Changing Nature of the School-to-Work Transition Process in OECD Countries," IZA Discussion Papers 2582, Institute of Labor Economics (IZA).
    4. Sara Alfieri & Alessandro Rosina & Emiliano Sironi & Elena Marta & Daniela Marzana, 2015. "Who are Italian "Neets"? Trust in institutions, political engagement, willingness to be activated and attitudes toward the future in a group at risk for social exclusion," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 123(3), pages 285-306.
    5. Eichhorst, Werner & Neder, Franziska, 2014. "Youth Unemployment in Mediterranean Countries," IZA Policy Papers 80, Institute of Labor Economics (IZA).
    6. Andrea Bassanini & Romain Duval, 2006. "Employment Patterns in OECD Countries: Reassessing the Role of Policies and Institutions," OECD Economics Department Working Papers 486, OECD Publishing.
    7. World Demographic and Ageing Forum & David Bell & Alison Bowes & Axel Heitmueller, 2007. "Did the Introduction of Free Personal Care in Scotland in a Reduction of Informal Care?," Journal Article y:2007:i:1, World Demographic and Ageing Forum.
    8. Blanchard, Olivier & Wolfers, Justin, 2000. "The Role of Shocks and Institutions in the Rise of European Unemployment: The Aggregate Evidence," Economic Journal, Royal Economic Society, vol. 110(462), pages 1-33, March.
    9. Matsumoto, Makiko. & Elder, Sara., 2010. "Characterizing the school-to-work transitions of young men and women : evidence from the ILO school-to-work transition surveys," ILO Working Papers 994572743402676, International Labour Organization.
    10. Pastore, Francesco, 2017. "Why so slow? The School-to-Work Transition in Italy," GLO Discussion Paper Series 65, Global Labor Organization (GLO).
    11. Gary S. Becker, 1964. "Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education, First Edition," NBER Books, National Bureau of Economic Research, Inc, number beck-5, March.
    12. Kim B. Clark & Lawrence H. Summers, 1982. "The Dynamics of Youth Unemployment," NBER Chapters, in: The Youth Labor Market Problem: Its Nature, Causes, and Consequences, pages 199-234, National Bureau of Economic Research, Inc.
    13. 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.
    14. Francesco Aiello & Graziella Bonanno, 2018. "Multilevel empirics for small banks in local markets," Papers in Regional Science, Wiley Blackwell, vol. 97(4), pages 1017-1037, November.
    15. 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).
    16. Stéphane Carcillo & Rodrigo Fernández & Sebastian Königs & Andreea Minea, 2015. "NEET Youth in the Aftermath of the Crisis: Challenges and Policies," OECD Social, Employment and Migration Working Papers 164, OECD Publishing.
    17. Floro Ernesto Caroleo & Francesco Pastore, 2007. "The Youth Experience Gap: Explaining Differences across EU Countries," Quaderni del Dipartimento di Economia, Finanza e Statistica 41/2007, Università di Perugia, Dipartimento Economia.
    18. Stefano Scarpetta & Anne Sonnet & Thomas Manfredi, 2010. "Rising Youth Unemployment During The Crisis: How to Prevent Negative Long-term Consequences on a Generation?," OECD Social, Employment and Migration Working Papers 106, OECD Publishing.
    19. Floro Ernesto Caroleo & Francesco Pastore, 2012. "Talking about the Pigou paradox," International Journal of Manpower, Emerald Group Publishing Limited, vol. 33(1), pages 27-50, March.
    20. Claire Crawford & Paul Gregg & Lindsey Macmillan & Anna Vignoles & Gill Wyness, 2016. "Higher education, career opportunities, and intergenerational inequality," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 32(4), pages 553-575.
    21. Marloes de Graaf-Zijl & Gerard van den Berg & Arjan Heyma, 2011. "Stepping stones for the unemployed: the effect of temporary jobs on the duration until (regular) work," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(1), pages 107-139, January.
    22. Irene Brunetti & Lorenzo Corsini, 2019. "School-to-work transition and vocational education: a comparison across Europe," International Journal of Manpower, Emerald Group Publishing Limited, vol. 40(8), pages 1411-1437, July.
    23. Sara Alfieri & Alessandro Rosina & Emiliano Sironi & Elena Marta & Daniela Marzana, 2015. "Who are Italian "Neets"? Trust in institutions, political engagement, willingness to be activated and attitudes toward the future in a group at risk for social exclusion," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 130(3), pages 285-306.
    24. Bell, David N.F. & Blanchflower, David G., 2011. "Youth Unemployment in Europe and the United States," IZA Discussion Papers 5673, Institute of Labor Economics (IZA).
    25. Giovanni S.F. Bruno & Floro E. Caroleo & Orietta Dessy, 2013. "Stepping stones versus dead end jobs: exits from temporary contracts in Italy after the 2003 reform," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 121(1), pages 31-62.
    26. Zimmermann, Klaus F. & Biavaschi, Costanza & Eichhorst, Werner & Giulietti, Corrado & Kendzia, Michael J. & Muravyev, Alexander & Pieters, Janneke & Rodríguez-Planas, Núria & Schmidl, Ricarda, 2013. "Youth Unemployment and Vocational Training," Foundations and Trends(R) in Microeconomics, now publishers, vol. 9(1–2), pages 1-157, December.
    27. Claudio Quintano & Antonella Rocca, 2017. "Migration Flows In The European Labour Markets," RIEDS - Rivista Italiana di Economia, Demografia e Statistica - The Italian Journal of Economic, Demographic and Statistical Studies, SIEDS Societa' Italiana di Economia Demografia e Statistica, vol. 71(3), pages 21-30, July-Sept.
    28. 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.
    29. Arulampalam, Wiji, 2001. "Is Unemployment Really Scarring? Effects of Unemployment Experiences on Wages," Economic Journal, Royal Economic Society, vol. 111(475), pages 585-606, November.
    30. Paul Ryan, 2001. "The School-to-Work Transition: A Cross-National Perspective," Journal of Economic Literature, American Economic Association, vol. 39(1), pages 34-92, March.
    31. T. Aldrich Finegan, 1978. "Should Discouraged Workers Be Counted as Unemployed?," Challenge, Taylor & Francis Journals, vol. 21(5), pages 20-25, November.
    32. Guglielmo Maria Caporale & Luis A. Gil-Alana, 2012. "Persistence in Youth Unemployment," CESifo Working Paper Series 3961, CESifo.
    33. repec:ilo:ilowps:457274 is not listed on IDEAS
    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. Rosario Scandurra & Ruggero Cefalo & Yuri Kazepov, 2021. "Drivers of Youth Labour Market Integration Across European Regions," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 154(3), pages 835-856, April.
    2. Emre Erdogan & Paul Flynn & Bahanur Nasya & Heidi Paabort & Vladislava Lendzhova, 2021. "NEET Rural–Urban Ecosystems: The Role of Urban Social Innovation Diffusion in Supporting Sustainable Rural Pathways to Education, Employment, and Training," Sustainability, MDPI, vol. 13(21), pages 1-15, November.
    3. Berigel, Muhammet & Boztaş, Gizem Dilan & Rocca, Antonella & Neagu, Gabriela, 2023. "A model for predicting determinants factors for NEETs rates: Support for the decision-makers," Socio-Economic Planning Sciences, Elsevier, vol. 87(PB).
    4. Minjong Youn & Chungseo Kang, 2023. "The Role of the Welfare State for NEETs: Exploring the Association Between Public Social Spending and NEET in European Countries," SAGE Open, , vol. 13(3), pages 21582440231, September.
    5. Pastore, Francesco & Quintano, Claudio & Rocca, Antonella, 2021. "Some young people have all the luck! The duration dependence of the school-to-work transition in Europe," Labour Economics, Elsevier, vol. 70(C).
    6. 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.
    7. Birca Alic, 2022. "Could The Neet Group Ensure An Increase In Employment In The Republic Of Moldova?," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 4, pages 58-67, August.
    8. Laura Zanfrini & Cristina Giuliani, 2023. "“ Look at Me, but Better ”: The Experience of Young NEET Migrant Women between Vulnerability and Stifled Ambitions," Social Sciences, MDPI, vol. 12(2), pages 1-27, February.
    9. Chiara Burlina & Alessandro Crociata & Iacopo Odoardi, 2021. "Can culture save young Italians? The role of cultural capital on Italian NEETs behaviour," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 38(3), pages 943-969, October.
    10. Aina, Carmen & Brunetti, Irene & Mussida, Chiara & Scicchitano, Sergio, 2021. "Even more discouraged? The NEET generation at the age of COVID-19," GLO Discussion Paper Series 863, Global Labor Organization (GLO).
    11. Sek-yum Ngai, Steven & Cheung, Chau-Kiu & Mo, Jianhong & Wang, Lin & Ng, Yuen-hang & Wang, Pinqiao, 2023. "Career interventions and social well-being among non-engaged youth: Examining the mediating effects of career competency," Children and Youth Services Review, Elsevier, vol. 148(C).
    12. Jan F. C. Gellermann & Philipp Fuchs, 2022. "The Role of Autonomy in the Transition to the World of Work," Social Inclusion, Cogitatio Press, vol. 10(2), pages 324-334.
    13. Jajati Keshari Parida & Shiba Shankar Pattayat & Sher Verick, 2023. "Why is the size of discouraged labour force increasing in India?," Economic Change and Restructuring, Springer, vol. 56(5), pages 3601-3630, October.
    14. Giorgio Liotti, 2022. "Labour Market Regulation and Youth Unemployment in the EU-28," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 8(1), pages 77-103, March.
    15. Giovanni Luca & Paolo Mazzocchi & Claudio Quintano & Antonella Rocca, 2020. "Going Behind the High Rates of NEETs in Italy and Spain: The Role of Early School Leavers," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 151(1), pages 345-363, August.
    16. Daniel Gladwell & Gurleen Popli & Aki Tsuchiya, 2022. "Predictors of becoming not in education, employment or training: A dynamic comparison of the direct and indirect determinants," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 185(S2), pages 485-514, December.
    17. Ligang Liu & Zhiwu Xiao & Yang Deng, 2023. "Who Does “Endowment Insurance†Support: The Elderly or Their Grown-up Children?," SAGE Open, , vol. 13(4), pages 21582440231, November.
    18. Ruggero Cefalo & Rosario Scandurra & Yuri Kazepov, 2020. "Youth Labor Market Integration in European Regions," Sustainability, MDPI, vol. 12(9), pages 1-18, May.

    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. Floro Ernesto Caroleo & Elvira Ciociano & Sergio Destefanis, 2017. "Youth Labour-Market Performance, Institutions and Vet Systems: A Cross-Country Analysis," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 3(1), pages 39-69, March.
    2. Floro Ernesto Caroleo & Elvira Ciociano & Sergio Destefanis, 2017. "The role of the education systems and the labour market institutions in enhancing youth employment: a cross-country analysis," Discussion Papers 1_2017, CRISEI, University of Naples "Parthenope", Italy.
    3. Giovanni Luca & Paolo Mazzocchi & Claudio Quintano & Antonella Rocca, 2020. "Going Behind the High Rates of NEETs in Italy and Spain: The Role of Early School Leavers," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 151(1), pages 345-363, August.
    4. Irene Brunetti & Lorenzo Corsini, 2019. "School-to-work transition and vocational education: a comparison across Europe," International Journal of Manpower, Emerald Group Publishing Limited, vol. 40(8), pages 1411-1437, July.
    5. Dario Sciulli & Marcello Signorelli, 2010. "University-to-work transitions: the case of Perugia," Quaderni del Dipartimento di Economia, Finanza e Statistica 77/2010, Università di Perugia, Dipartimento Economia.
    6. Enrico Marelli & Misbah T. Choudhry & Marcello Signorelli, 2013. "Youth and total unemployment rate: the impact of policies and institutions," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 121(1), pages 63-86.
    7. O'Higgins, Niall, 2012. "This Time It's Different? Youth Labour Markets During 'The Great Recession'," IZA Discussion Papers 6434, Institute of Labor Economics (IZA).
    8. Gunther Tichy, 2014. "Flexicurity – ein an seiner Umsetzung scheiterndes Konzept," WIFO Monatsberichte (monthly reports), WIFO, vol. 87(8), pages 537-553, August.
    9. Joan Miquel Verd & Oriol Barranco & Mireia Bolíbar, 2019. "Youth unemployment and employment trajectories in Spain during the Great Recession: what are the determinants?," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 53(1), pages 1-20, December.
    10. 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.
    11. Pastore, Francesco, 2017. "Why so slow? The School-to-Work Transition in Italy," GLO Discussion Paper Series 65, Global Labor Organization (GLO).
    12. Dal Bianco, Silvia & Bruno, Randolph L. & Signorelli, Marcello, 2015. "The joint impact of labour policies and the “Great Recession” on unemployment in Europe," Economic Systems, Elsevier, vol. 39(1), pages 3-26.
    13. Floro Ernesto Caroleo & Francesco Pastore, 2009. "Le cause del(l') (in)successo lavorativo dei giovani," Economia & lavoro, Carocci editore, issue 3, pages 107-107.
    14. 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.
    15. Marelli Enrico & Sciulli Dario & Signorelli Marcello, 2014. "Skill mismatch of graduates in a local labour market," Экономика региона, CyberLeninka;Федеральное государственное бюджетное учреждение науки «Институт экономики Уральского отделения Российской академии наук», issue 2, pages 181-194.
    16. Francesco Pastore & Claudio Quintano & Antonella Rocca, 2020. "Stuck at a crossroads? The duration of the Italian school-to-work transition," International Journal of Manpower, Emerald Group Publishing Limited, vol. 42(3), pages 442-469, September.
    17. 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.
    18. Dennis Tamesberger & Johann Bacher, 2020. "COVID-19 Crisis: How to Avoid a ‘Lost Generation’," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 55(4), pages 232-238, July.
    19. Sandirasegarane, Sharmila & Sutermaster, Staci & Gill, Alyssa & Volz, Jennifer & Mehta, Khanjan, 2016. "Context-driven entrepreneurial education in vocational schools," International Journal for Research in Vocational Education and Training (IJRVET), European Research Network in Vocational Education and Training (VETNET), European Educational Research Association, vol. 3(2), pages 106-126.
    20. Josef C Brada & Marcello Signorelli, 2012. "Comparing Labor Market Performance: Some Stylized Facts and Key Findings," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 54(2), pages 231-250, June.

    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:soinre:v:149:y:2020:i:3:d:10.1007_s11205-020-02270-6. 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.