The Economic and Social Determinants of NEET Rates in European Union Countries

Abstract

The transformations of the European labour market have increased the relevance of studies addressing occupational vulnerability and the challenges associated with the professional integration of young people. This paper aims to examine the economic and social determinants influencing the NEET (Not in Education, Employment, or Training) rate across the European Union, while also identifying the structural differences among European economies according to labour market characteristics. In order to achieve this objective, we use two panel data regression models in order to analyze the effects of economic, occupational, and social factors on the NEET rate, and to highlight the structural differences identified between genders. The results of the analysis show that the female NEET rate does not appear to be driven primarily by labour market fluctuations or by conventional macroeconomic factors, but rather by the continuity and stability of women’s participation in economic activity. For the young men, our model identifies a broader set of factors associated with occupational vulnerability, dominated by long-term unemployment, poverty risk, and the persistence of unemployment spells as the main exclusionary mechanisms.