Empirical analysis of the relationships between youth not in education, training and employment (NEET), youth unemployment and economic growth in Turkey

Unemployment and employment are the main problems of all countries today. Undoubtedly, the people most affected by this situation are the youth. Considering the youth unemployment and youth unemployment rates in Turkey, who are not in education, training or employment (NEET), it is seen that they are well above the EU average. Especially for a Turkey whose direction is EU, the high rates of youth unemployment and NEET affect Turkey negatively. Although education policies are included in the first place for a solution in Turkey, factors such as gender perception and patriarchal social structure should be taken into account as soon as possible. In this context, the first aim of the study is to examine the young unemployed and NEETs in Turkey at the macro and micro level, to include the policies implemented and to show the situation of Turkey in the EU. The second aim is due to the relationship between economic growth and youth unemployment. Many studies have not based NEETs when investigating the relationship between economic growth and youth unemployment. In this study, the relationship between economic growth, youth unemployment and NEETs is analyzed based on Okun's Law. In the results obtained by applying Granger Causality Analysis, a long-term causality relationship from growth and NEETs to youth unemployment has been determined. In the short run, a causal relationship was found from growth and NEETs to youth unemployment and from youth unemployment to growth. The results of impulse-response and variance decomposition analysis also support the test findings.