  This paper aims to estimate the effect of young people who are not in
employment, education or training (neets rate) on the people at risk of poverty
rate in the European Union. Statistical data covering the 2010-2016 period for
all EU-28 Member States have been used. Regarding the methodology, the study
was performed by using Panel Estimated Generalized Least Squares method,
weighted by Period SUR option. The effect of neets rate on poverty rate proved
to be positive and statistically significant in European Union, since this
indicator includes two main areas which are extremely relevant for poverty
dimension. Firstly, young unemployment rate was one of the main channels
through which the financial crisis has affected the population income.
Secondly, it accounts for the educational system coverage and its skills
deficiencies.
