ISSN: 2782-893X
eISSN: 2799-0664
ISSN: 2782- 893X
—— Youth disengagement from education, employment, or training (NEET) poses a significant challenge for policymakers and educational institutions worldwide. This study investigates the influence of three key predictors on the NEET rate: government expenditure on education as a percentage of GDP, pupil-teacher ratio in secondary education, and the number of secondary education teachers. Utilizing data from the World Bank Databank covering 41 countries across Europe and Asia for the year 2017, this research employs robust regression analysis to address issues of outliers and heteroscedasticity, ensuring reliable and accurate results. The findings reveal complex interrelations between the predictors and the NEET rate. Contrary to the assumption that higher educational expenditure directly correlates with lower NEET rates, our analysis indicates that the effectiveness of expenditure is contingent upon its allocation and utilization within the educational system. Specifically, while government spending on education shows a moderate negative impact on the NEET rate, this relationship is significantly mediated by the pupil-teacher ratio and the total number of secondary education teachers. Countries with lower pupil-teacher ratios, reflecting more individual attention for students, tend to exhibit lower NEET rates. Additionally, the sheer number of secondary education teachers alone does not suffice to reduce youth disengagement; rather, the distribution and accessibility of qualified teachers are crucial factors. This research underscores the importance of strategic investment in education that goes beyond mere financial input, advocating for policies that enhance educational infrastructure and teacher-student interaction. By providing a nuanced understanding of the predictors influencing NEET rates, the study offers valuable insights for designing targeted interventions to re-engage youth in education and employment pathways, ultimately contributing to socioeconomic development. Keywords: NEET rate, educational expenditure, Pupil- teacher ratio, Secondary education, Robust regression analysis, Youth disengagement from education, Socio- economic development