NEET youth in central and eastern European countries: a panel model approach

The purpose of the present study was to examine macro-determinants of the Not Engaged in Employment, Education, or Training Young People (NEET) in Central and Eastern European Countries. Data from 16 countries were collected from Eurostat –, UNESCO – and Word Bank Database 2013–2021 by using the panel data analysis method. Early school leaving rate, vocational education and training enrollment rate, unemployment rate, labour market regulation, gross domestic product, education expenditure and human development index were used for explaining the NEET in selected area. The relationship between variables was analyzed using the Panel Data Methods via Fixed-Effects Model. Therefore, according to the findings of Driscoll and Kraay Estimator – One-Way Fixed Effects Model, gross domestic product, labour market regulation, early school leaving rate, vocational education, and training enrollment rate variables have a high and statistically significant effect on NEET as the dependent variable, while unemployment rate and human development index have a marginal but significant effect on NEET. The findings of the present study showed associations between socio-economic and institutional conditions (labour market regulation) and the NEET rate at the country level and may indicate appropriate policy measures to promote a decrease in the NEET rate.