“NEET status duration and socio-economic background”

Abstract

NEET refers to young people who are not in employment, education or training. It can occur in a variety of situations and requires attention, especially if it tends to persist over time. Indeed, individuals who leave education and enter the labor market looking for a job are classified as NEET. While in the majority of cases they tend to move into employment status within a short period of time, in others they remain in this status for longer, with negative consequences for their future career or never enter the labor market. Although the scarring effect of longer spells outside the labor market (for unemployment or inactivity) is well known in the economic literature, empirical evidence on this topic are very limited due to the lack of adequate data needed for this analysis.

This article aims to fill this gap in the literature and is finalized to verify the influence exerted by the socio-economic background of individuals on the likelihood of becoming and remaining for a long time NEET, according to different levels of education. The analysis is based on AD-SILC dataset, obtained by matching the EU-SILC data with the administrative archives of the INPS, the National Institute for Social Security. Our results reveal that individuals with the same level of educational attainment, but from a higher socio-economic status, have a significantly shorter duration in the NEET condition and a higher probability of transitioning to employment. Conversely, individuals with the same level of education show no significant effects if they come from a low socio-economic background.