Determinants of NEETs, using Granger Causality Tests: Applications to ECE and Arab Economies

Abstract The current paper aims at establishing the likely causality between NEETs and other economic, social and political variables in the countries of Central and East European economies (ECE) with a focus on the situation of Arab economies. A literature review on NEETs has allowed for finding the magnitude and extent of non-regular and vocation education besides non-employment among the youngest segments of the population. Granger causality tests are applied to the available data to establish the likelihood of the determinants of NEETs. The hypotheses for testing relate to the links between NEETs, education, employment, health, and governance variables. The findings show that there is causality between NEETs and other economic, social and governance indicators. The findings also indicate that NEETs do not have common traits as their determinants differ from a country to another. The NEETs have a unique model for each economy that causes or might be caused with one or a range of variables. These results emphasize that countries and especially Arab countries need to monitor NEETs and pursue analyzes that allow for the enhancement of their policy making processes using relevant and accurate information