NEET rates convergence in Europe: A regional analysis

Laia Maynou (), Javier Ordóñez and José Ignacio Silva ()
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Laia Maynou: Department of Health Policy, London School of Economics and Political Science, UK
José Ignacio Silva: Department of Economics, Universitat de Girona, Spain

No 2020/08, Working Papers from Economics Department, Universitat Jaume I, Castellón (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.

Keywords: convergence; European Union; youth unemployment; NEET (search for similar items in EconPapers)
JEL-codes: C33 E23 J13 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2020
New Economics Papers: this item is included in nep-eur, nep-lab, nep-mac and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:jau:wpaper:2020/08

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