Understanding Out-of-Work and Out-of-School Youth in Europe and Central Asia
Washington, D.C.: World Bank Group, Forthcoming.
72 Pages Posted: 24 Aug 2015
Date Written: July 31, 2015
Objectives: The objectives of this study are to describe and analyze the out-of-work and out-of-school youth (ages 15-24) in the Europe and Central Asia (ECA) region. People who are out-of-work and out-of-school are referred to as NEET (Not in Employment, Education or Training). This study attempts to characterize the NEETs by age, gender, education and their activity status.
Methods: This study uses micro level data obtained from several surveys conducted from the early 2000s through 2011 to study the NEETs in three time periods: 2001-2002, pre-2009 and post-2009. NEET rates for different age intervals, gender and educational attainment are investigated for the ECA region and countries within. Regression analysis is used.
Results: The main findings of this study are listed below. First, we find that in the post-2009 period the youth NEET rate for the ECA region was 19.60%, which is higher than the OECD youth NEET rate of 16% in 2011 (OECD 2013). Second, this study finds that the NEET rate prior to the financial crisis in 2009 was on the decline, and increased in the post-2009 period. Third, this study finds that the NEET rate for ECA is higher for women than for men for all years. However, since the financial crisis in 2009, the gender gap has declined from 4.64 in pre-2009 to 2.75 percentage points in post-2009, suggesting that young men were more adversely affected by the recession than women. Fourth, this study finds that in the ECA region youth males are more often classified as NEETs but active in the labor market, and youth females are more often classified as NEETs but inactive in the labor market. Fifth, using a linear probability model, this study finds that individuals who are 20-24 years of age, have a lower level of educational attainment and married females are more likely to be NEET. Also, individuals living in urban areas and with lower household sizes are less likely to be NEET. Sixth, another linear probability model was constructed using household budget surveys for six countries in ECA from 2009. The main finding from this model was that NEET youths tend to live in households with lower per capita consumption than their non-NEET counterparts. Seventh, there is an increase in the NEET (unemployed) rate after the crisis, while the NEET (inactive) rate stayed roughly constant.
Keywords: Youth; Inactive youth; unemployment; out of work; out of school
JEL Classification: J1; J2; J6; I2; I3
Suggested Citation: Suggested Citation