12.86% of Spanish youth aged 15 to 24 neither study nor work, according to the OECD. The UK surpasses Spain with 13.61% and is already debating lowering the youth minimum wage to curb the phenomenon.
12.86% of Spaniards aged between 15 and 24 neither study nor work, a rate that places Spain in eighth position in the OECD, according to the latest report from the organisation, as noted by proexpansion.com. Ahead of Spain, the UK reaches 13.61%, the seventh highest record on the list. Both countries share a problem that is already influencing the design of their youth employment policies.
Economists David Neumak and Emma Wohl from the University of California, Irvine, argue that there is no evidence that raising the minimum wage reduces poverty. Their argument: a considerable portion of those earning low wages are young people living in households with incomes well above the poverty threshold, often with their parents.
What raising the minimum wage can cause, they warn, is the expulsion of young people from the labour market, an effect that translates into an increase in the 'ninis' rate.
In the UK, where the causes of the rise in these young people are already being analysed, there is a youth minimum wage with tiers based on age. The previous government raised it to converge towards equal pay. Now, with Andy Burnham on the scene, proposals include subsidising minimum wage jobs aimed at young people and increasing state hiring in areas with a high incidence of 'ninis'.
This is not an exclusive formula of the UK. The Netherlands pays 18-year-olds half the minimum wage per hour that 21-year-olds receive. This practice is spreading across Europe as a response to youth unemployment.
The debate directly affects Spain, which, with 12.86% of 'ninis', ranks among the eight OECD countries with the highest rates. Experts agree that policies to tackle the problem will need to address access to first jobs and training for young people, not just the level of the minimum wage.
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