What Do NEETs Need? The Joint Effect of Active and Passive Labor Market Policies

Garantie Jeunes was a program in France for disadvantaged youths who are “neither in employment, education, or training” (NEETs). Beneficiaries of the program were NEETs aged 16-25 registered at employment centers.

Upon enrollment in Garantie Jeunes, the participant was required to sign a contract of engagement for one year, risking exclusion from the program if not participating in the activities. The first six weeks of the program consisted of courses provided by 2 counselors, with 10-20 participants per class. These courses focused on both soft skills linked to job search (e.g., presentation skills, job search strategies, applications, CVs, motivation letters) and personal habits and self confidence (e.g., learning to be timely, managing personal health, planning ahead).

After these courses followed a ten-month period of job search assistance, with a personal counselor following each youth by phone, email, and interviews approximately every 3 weeks. This second phase is characterized by a “work-first” approach, with frequent proposals of internships and short work experiences of at most a month, during which the youth works on small tasks in a partner firm with the aim of learning about the working environment and the industry.

In addition to the training, while participating in the youths receive a monthly cash transfer equal to the amount provided by the French minimum income scheme, which is annually updated. For example, this cash transfer was €484.82 gross in April 2018. If a participant found a job before the end of the program, the cash transfer was not reduced until €300 of labor earnings.

Filippucci (2022) calculates the MVPF of the Garantie Jeunes program.