How does the place of residence affect young people’s disengagement?

Abstract

AbstractYoung people are one of the most vulnerable segments of the population in the labour market. This evidence is due to many personal and macro-economic factors and applies to all countries worldwide. However, the young people's disadvantage strongly differs across countries and, in some cases, also within the countries. In this paper, we aim at analyzing the influence that the place of residence exerts on the propensity to the NEET (young individuals not in employment, education, or training) status in Italy, the country that, in Europe, shows by many years the highest share of NEETs, with an evident internal variability. We applied a multilevel model using macro-data with deep territorial detail: the regional, the provincial, and even the municipality level. Results highlight the significant effect on the NEET phenomenon of factors linked to the territory, including the share of enterprises, the innovative content of the economy, and the quality of the education system. Investing in education, even in adults’ continuing education, can significantly reduce the share of NEETs, especially in the most depressed areas of the South of Italy.