This study examines the global phenomenon of young people Not in Education, Employment, or Training (NEET) through the distinction between economic growth and development. To address a gap in the literature, it conducts a comparative econometric analysis using panel data for 2005–2019 covering 23 middle-income and 23 high-income countries, based on the World Bank classification. Turkey is included in the middle-income group. The findings show that the effects of growth and development indicators on NEET rates differ across income groups. In middle-income countries, GDP growth reduces NEET rates, but its effect is weaker than that of development indicators, particularly the Human Development Index (HDI). Contrary to expectations, capital investment and health expenditure increase NEET rates in middle-income countries, whereas capital investment has the expected reducing effect in high-income countries. These results suggest that middle-income countries face difficulties in translating economic growth into employment opportunities and social development. The study concludes that the NEET problem in middle-income countries is not merely a growth issue, but a broader development problem. Accordingly, policy responses should prioritize human capital, education quality, and institutional effectiveness rather than growth-oriented strategies alone.
Yenihan et al. (Mon,) studied this question.