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

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 eff

SUBMITTER: Mussida C 

PROVIDER: S-EPMC9823250 | biostudies-literature | 2023 Jan

REPOSITORIES: biostudies-literature