The NEET trap: A dynamic analysis for Mexico

The lack of decent work opportunities for youth is a growing concern worldwide. In many countries there is a large number of youth that are absent from the labour force and education. Using data from the Mexican labour force surveys, we study labour market transitions of youth focussing on the category of NEET, i.e. youth not engaged in education, employment, or training. We find that the NEET phenomenon interests an increasing number of youth and specific groups suffer from a higher risk of falling and being trapped in the NEET status, that appears to be very persistent over time. ‡ UCW Project Rome, and University of Rome Tor Vergata. § UCW Project Rome, University of Rome Tor Vergata, and IZA.