The Rise of NEET and Youth Unemployment in EU Regions after the Crisis

This paper assesses the impact of the recent crisis on the NEET (neither in employment or education or training) rate and the youth unemployment rate in EU regions. We use Eurostat data for the 2000–2010 period and focus on changes in both indices from 2000–2008 to 2009–2010. Employing Generalized Method of Moments (GMM) and bias-corrected Least Squares Dummy Variables (LSDV) dynamic panel data estimators, implemented by pooling both all regions and different groups of countries, we find that NEET rates are persistent and that persistence increases over the crisis period but that results vary depending on which of five regional groups is considered.