The Impact of Education on Youth Employability: The Case of Selected Southeastern European Countries

Abstract

This paper focuses on the processes of school-to-work transitions in a selected group of countries from South-eastern Europe (SEE), namely: Bosnia and Herzegovina; Croatia; Montenegro; North Macedonia; Serbia; and, Slovenia. Each of these countries display the same roots of development in their educational systems: however, due to their transition and integration processes within the European Union, they implemented different concepts of reforms within their educational systems. In addition, the challenges of youth employability are a common problem for each of the selected countries, and the effectiveness of the processes of school-to-work-transition varies across the countries. By using panel data and multiple linear regression models, this paper estimates the impact of different educational levels on youth employability and changes in the rates of NEET population (aged 15–24) in the selected group of countries over the period 2009 to 2019. The results suggest that the impact of the attained level of education has an ambiguous effect on the rates of youth employment; moreover, the relationship with changes in NEET rates are statistically significant and negative in most of the selected group of countries.