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NEET rates convergence in Europe: A regional analysis

Author

Listed:
  • Laia Maynou

    (Department of Health Policy, London School of Economics and Political Science, UK)

  • Javier Ordóñez

    (IEI and Department of Economics, Universitat Jaume I, Castellón, Spain)

  • José Ignacio Silva

    (Department of Economics, Universitat de Girona, Spain)

Abstract

In this paper, we study the convergence of the NEET rates (the rate of young people not in employment, education or training) across European regions between 2000 and 2015. First, we apply the Phillips and Sul (2007, 2009) convergence tests and identify the presence of four important clusters with different trends in the NEET rates. The first two clusters mainly include regions located in Western and Southern Europe and show an increase with respect to the average NEET but with different speed. The other two clusters mainly contain North and Central European regions showing constant NEET rates with respect but with different levels. Then, we use a spatial-temporal econometric model to confirm the presence of β–convergence in the NEET rates, identify their determinants in each cluster and calculate their long-run NEET rates. The young unemployment rate and the percentage of early leavers from education and training are the main determinants of the in all clusters.

Suggested Citation

  • Laia Maynou & Javier Ordóñez & José Ignacio Silva, 2020. "NEET rates convergence in Europe: A regional analysis," Working Papers 2020/08, Economics Department, Universitat Jaume I, Castellón (Spain).
    • Handle: RePEc:jau:wpaper:2020/08
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    References listed on IDEAS

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    More about this item

    Keywords

    convergence; European Union; youth unemployment; NEET;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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