An Econometrical Study about fractional Response Variables with an Application to Swedish NEET and Municipal Labour Market Activities
(2018) STAH11 20172Department of Statistics
- Abstract
- Over the last ten years young people Not in Education, Employment or Training (NEET) in Sweden have increased from three to almost sixteen percent. During the same period, decentralization of active labour market programs from central to local governments have been implemented. Consequently, since 2005 Swedish municipalities have a statutory obligation to offer young people in NEET appropriate support. However, little is known about the effect of municipal labour market programs.
In empirical studies, the most common approach used to explain NEET, a fractional dependent variable observed in the interval [0,1], has been Ordinary Least Square (OLS). However, the bounded nature of the variable raises estimation and inference issues. The... (More) - Over the last ten years young people Not in Education, Employment or Training (NEET) in Sweden have increased from three to almost sixteen percent. During the same period, decentralization of active labour market programs from central to local governments have been implemented. Consequently, since 2005 Swedish municipalities have a statutory obligation to offer young people in NEET appropriate support. However, little is known about the effect of municipal labour market programs.
In empirical studies, the most common approach used to explain NEET, a fractional dependent variable observed in the interval [0,1], has been Ordinary Least Square (OLS). However, the bounded nature of the variable raises estimation and inference issues. The contribution of this study, to the existing literature about NEET is the use of new econometrical methods i.e. generalized linear model and fractional regression model that are, in terms of their underlying assumptions, more appropriate to use estimating fractional dependent variable. The overall results of 3179 observations on 289 Swedish municipalities between 2003 and 2013 indicates that labour market participation, newly announced places to PES and percentage studying at Komvux within a municipal significantly diminishes NEET. Further, municipal labour programs that strengthen human capital and (or) provide on-the-job-training reduce NEET. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/8936150
- author
- Pello-Esso, Wazah LU
- supervisor
- organization
- course
- STAH11 20172
- year
- 2018
- type
- M2 - Bachelor Degree
- subject
- keywords
- NEET, Swedish NEET, generalized linear model, fractional dependent variable, fractional regression model, municipal labour market Programs, “Informations- och aktivitetsansvaret”
- language
- English
- id
- 8936150
- date added to LUP
- 2018-04-23 11:45:49
- date last changed
- 2018-04-23 11:45:49
@misc{8936150, abstract = {{Over the last ten years young people Not in Education, Employment or Training (NEET) in Sweden have increased from three to almost sixteen percent. During the same period, decentralization of active labour market programs from central to local governments have been implemented. Consequently, since 2005 Swedish municipalities have a statutory obligation to offer young people in NEET appropriate support. However, little is known about the effect of municipal labour market programs. In empirical studies, the most common approach used to explain NEET, a fractional dependent variable observed in the interval [0,1], has been Ordinary Least Square (OLS). However, the bounded nature of the variable raises estimation and inference issues. The contribution of this study, to the existing literature about NEET is the use of new econometrical methods i.e. generalized linear model and fractional regression model that are, in terms of their underlying assumptions, more appropriate to use estimating fractional dependent variable. The overall results of 3179 observations on 289 Swedish municipalities between 2003 and 2013 indicates that labour market participation, newly announced places to PES and percentage studying at Komvux within a municipal significantly diminishes NEET. Further, municipal labour programs that strengthen human capital and (or) provide on-the-job-training reduce NEET.}}, author = {{Pello-Esso, Wazah}}, language = {{eng}}, note = {{Student Paper}}, title = {{An Econometrical Study about fractional Response Variables with an Application to Swedish NEET and Municipal Labour Market Activities}}, year = {{2018}}, }