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The Effect of Young People Not In Employment, Education or Training, On Poverty Rate in European Union

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  • Ionut Jianu

Abstract

This paper aims to estimate the effect of young people who are not in employment, education or training (neets rate) on the people at risk of poverty rate in the European Union. Statistical data covering the 2010-2016 period for all EU-28 Member States have been used. Regarding the methodology, the study was performed by using Panel Estimated Generalized Least Squares method, weighted by Period SUR option. The effect of neets rate on poverty rate proved to be positive and statistically significant in European Union, since this indicator includes two main areas which are extremely relevant for poverty dimension. Firstly, young unemployment rate was one of the main channels through which the financial crisis has affected the population income. Secondly, it accounts for the educational system coverage and its skills deficiencies.

Suggested Citation

  • Ionut Jianu, 2020. "The Effect of Young People Not In Employment, Education or Training, On Poverty Rate in European Union," Papers 2007.11435, arXiv.org.
    • Handle: RePEc:arx:papers:2007.11435
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    References listed on IDEAS

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    1. Eric Crettaz, 2011. "Fighting Working Poverty in Post-industrial Economies," Books, Edward Elgar Publishing, number 14491.
    2. Anthony Atkinson, 2013. "Reducing income inequality in Europe," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-11, December.
    3. Geranda Notten & Anne-Catherine Guio, 2016. "The impact of social transfers on income poverty and material deprivation," ImPRovE Working Papers 16/17, Herman Deleeck Centre for Social Policy, University of Antwerp.
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