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The Impact of NEET and Labor Market Indicators on Human Development: A Panel Data Analysis for EU-28 Countries

Author

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  • Ufuk Bingöl

    (Manyas Vocational School, Department of Management and Organization, Balıkesir, Turkey., Bandırma On Yedi Eylül Üniversitesi, Balikesir, Turkey)

  • Fatih Ayhan

    (Faculty of Economics and Administrative Sciences, Department of Economics, Balıkesir, Turkey., Bandırma On Yedi Eylül Üniversitesi, Balikesir, Turkey)

Abstract

This study aims to investigate the effect of education, unemployment and not-in-education employment or training (NEET) population on human development in the EU-28 countries during the 2004-2018 period by using panel data analysis. According to the panel data analysis results with Common Correlated Effects Mean Group (CCEMG) estimator, the variables unemployment (UNE) and education (EDU) are statistically significant in explaining Human Development Index (HDI) across the panel. In contrast, the variable NEET (NEET) is found to be not statistically significant, but the obtained coefficient is in the expected direction. In this case, a 1% increase in the UNE variable decreases HDI by 0.01%, and a 1% increase in the EDU variable increases HDI by 0.30%. The model appears to be statistically significant. According to the regression estimation results based on for each country, the coefficients vary quantitatively and statistically. Still, it is noteworthy that the NEET variable, which is statistically insignificant throughout the panel, varies statistically from unit to unit. These results confirm that NEET and HDI are negatively correlated in Czechia, Denmark, Finland, and Germany, while positively correlated in France, Poland, and Portugal.

Suggested Citation

  • Ufuk Bingöl & Fatih Ayhan, 2020. "The Impact of NEET and Labor Market Indicators on Human Development: A Panel Data Analysis for EU-28 Countries," Journal of Social Policy Conferences, Istanbul University, Faculty of Economics, vol. 0(79), pages 441-468, December.
    • Handle: RePEc:ist:iujspc:v:0:y:2020:i:79:p:441-468
    DOI: 10.26650/jspc.2020.79.0158
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