The Effect of Parents’ Economic Support on Employment among NEET Youth: Recurrent Event Survival Analysis

Abstract

Employment instability among youth is one of the key factors contributing to the increase in NEET (Not in Education, Employment & Training) youth. On the other hand, parental economic support has a positive impact on the probability of employment among NEET youth by promoting human capital accumulation and job search. Therefore, this study analyzes the impact of parental economic support on the probability of transition to employment among NEET youth, using data from the Youth Panel Survey (YP2007) conducted by the Korea Employment Information Service. Descriptive statistics, frequency analysis, the Kaplan-Meier survival function, and Cox proportional hazards model analysis were performed using STATA 18.0. The Kaplan-Meier survival function analysis showed a distinct divergence between the survival curves of the two groups based on economic support status at the 18-month mark, indicating that NEET youth receiving economic support had a higher likelihood of employment. The Cox proportional hazards model further confirmed that the probability of employment increased significantly with the amount of economic support received. This study highlights the importance of parental financial support in the job search process and proposes policy measures aimed at promoting fair competition among youth.