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

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  • 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
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    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. Daiva Skučienė & Rūta Brazienė, 2024. "Active Labour Market Policies for Rural NEETs in Lithuania: A Case of Rural Municipalities," Politics and Governance, Cogitatio Press, vol. 12.
    3. Berigel, Muhammet & Boztaş, Gizem Dilan & Rocca, Antonella & Neagu, Gabriela, 2024. "Using machine learning for NEETs and sustainability studies: Determining best machine learning algorithms," Socio-Economic Planning Sciences, Elsevier, vol. 94(C).
    4. Fabrizi, Elena & Rocca, Antonella, 2024. "“NEET status duration and socio-economic background”," Socio-Economic Planning Sciences, Elsevier, vol. 95(C).
    5. 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.

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    More about this item

    Keywords

    Poverty; NEET; Youth; Persistence; Europe;
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