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Economic Outcomes of Youth not in Education, Employment or Training (NEET)

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Abstract

The paper examines the outcomes of youth not in education, employment or training (NEET) up to four years after the initial long-term spell of NEET. The paper covers outcomes of NEETs in relation to benefit receipt, education, employment and future inactivity. These outcomes are compared across NEETs and a control group of non-NEETs. Propensity Score Matching is used to control for observed characteristics of NEETs and controls to ensure that outcomes are not driven by underlying differences in specific characteristics. The paper finds that individuals who experience a long-term spell of NEET in their youth experience relatively poorer outcomes than their control group peers after the first two years. Long-term NEETs are less likely to be employed, are more likely to be inactive and/or receiving a benefit. There are no differences in the rates of study. The differences in outcomes between NEETs and the control group are reduced after four years.

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  • Anton Samoilenko & Kristie Carter, 2015. "Economic Outcomes of Youth not in Education, Employment or Training (NEET)," Treasury Working Paper Series 15/01, New Zealand Treasury.
    • Handle: RePEc:nzt:nztwps:15/01
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    File URL: https://treasury.govt.nz/sites/default/files/2015-03/twp15-01.pdf
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    References listed on IDEAS

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    1. Bart Cockx & Matteo Picchio, 2013. "Scarring effects of remaining unemployed for long-term unemployed school-leavers," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 176(4), pages 951-980, October.
    2. Gregg, Paul & Tominey, Emma, 2005. "The wage scar from male youth unemployment," Labour Economics, Elsevier, vol. 12(4), pages 487-509, August.
    3. Nick Carroll, 2006. "Explaining Unemployment Duration in Australia," The Economic Record, The Economic Society of Australia, vol. 82(258), pages 298-314, September.
    4. Rajeev H. Dehejia & Sadek Wahba, 2002. "Propensity Score-Matching Methods For Nonexperimental Causal Studies," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 151-161, February.
    5. Gregory, Mary & Jukes, Robert, 2001. "Unemployment and Subsequent Earnings: Estimating Scarring among British Men 1984-94," Economic Journal, Royal Economic Society, vol. 111(475), pages 607-625, November.
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    Cited by:

    1. Siu-ming To & Cheong-wing Wong Victor & Dick-man Leung Daniel & Cheryl Danielle Lau & Xuebing Su, 2021. "Navigating Risk Discourses: a Narrative Analysis of Parental Experiences in the Career and Life Development of Youth not in Education, Employment, or Training," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 16(5), pages 2039-2058, October.
    2. Yoshiyuki Tanaka, 2020. "What prolongs the duration of NEET status for youth? Evidence from Japanese panel data," International Journal of Economic Policy Studies, Springer, vol. 14(2), pages 421-448, August.
    3. Yonatan Dinku, 2021. "A longitudinal analysis of economic inactivity among Indigenous youth," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 24(1), pages 25-45.
    4. Yoshiyuki Tanaka, 0. "What prolongs the duration of NEET status for youth? Evidence from Japanese panel data," International Journal of Economic Policy Studies, Springer, vol. 0, pages 1-28.

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    More about this item

    Keywords

    youth; NEET; outcomes; education; employment; welfare; Propensity Score Matching;
    All these keywords.

    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty

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