Abstract
The purpose of this paper is twofold. First, drawing on data from the Household Labor Force Surveys over the period 2004-2013, it examines the determinants of the NEET (Not in Employment, Education or Training) status for the Turkish youth. This is particularly important for Turkey as it has the highest NEET rate among the OECD countries. Second, it describes the movement of the youth across four states: education, employment, unemployment and inactivity. Probit results indicate that gender and educational attainment are key factors for explaining the NEET status. Findings also show that a greater number of household members that are in employment is associated with a lower likelihood of NEET. Transition analyses reveal that the state of inactivity remains highly persistent despite the substantial fall over the sample period. In addition, the rise in the persistence of education between 2007 and 2009 underlines the choice of the youth to stay in education in response to the fall in labor market prospects.
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