Italian NEETs in 2012–2021: job search channels and labour market reforms

Purpose - For many years, Italy has been the EU country with the highest share of NEETs. The causes are the high level of unemployment, the inefficacy of the education system to provide the practical skills to prepare young people for work and the underdeveloped institutions that should help young people find a job. This paper aims to study NEETs from 2012 to 2021, focusing on the role exerted by the channels used to find a job and public employment services, analysing the effects of two important labour market reforms in force in these years: the Youth Guarantee Fund and citizenship income. Design/methodology/approach - The analysis is based on SARIMAX models applied to the time series constructed from the labour force survey data using a four-week periodicity. ACF and PACF patterns were used to estimate the parameters. Findings - Results show a great propensity of Italian young people to use informal channels and direct applications to employers, while the public and private employment agencies do not significantly contribute to the job search process. The citizenship income shows a statistically significant reduction in the share of NEETs, while no significant effects arise for the Youth Guarantee. Originality/value - The paper makes an important contribution to the knowledge of the role of the different job search channels in helping young people find a job and on the effects of the recent labour market reforms.