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

Authors : Ufuk BİNGÖL, Fatih AYHAN

Pages : 441-468

Doi:10.26650/jspc.2020.79.0158

View : 56 | Download : 12

Publication Date : 2020-12-31

Article Type : Research Paper

Abstract :This study aims to investigate the effect of education, unemployment and not-in-education employment or training insert ignore into journalissuearticles values(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 insert ignore into journalissuearticles values(CCEMG); estimator, the variables unemployment insert ignore into journalissuearticles values(UNE); and education insert ignore into journalissuearticles values(EDU); are statistically significant in explaining Human Development Index insert ignore into journalissuearticles values(HDI); across the panel. In contrast, the variable NEET insert ignore into journalissuearticles values(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.
Keywords : human development, NEET, unemployment, panel data analysis

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