Does Technology Intensity of Exports Affect Youth Neet? Empirical Evidence from OECD Countries

Abstract

Exports decrease unemployment rate, and affect human capital accumulation by increasing educational attainment in an economy. However, the magnitude of such impact depends on technology intensity of exports. In addition to this, an increase in educational attainment does not guarantee transition of youth from schoo 1-to-work. In this context, investigating the impact of exports by their technology intensity on youth not in employment, education or training (NEET) is necessary for the analysis of trade and labor market interactions. The prospected contribution of this research is that it empirically explores the impact of low, medium and high technology exports on youth NEET by seeking an answer to the following research question: Does technology intensity of exports affect youth NEET? The study uses panel data analysis for 22 OECD countries, and it analyzes the time period from 1995 to 2015. The response variable of the model is the percentage of NEET population, and the independent variables are exports of low, medium and high technology exports. In order to control for country specific factors, the model also include control variables of GDP, population, schooling and the social policies towards unemployment.