-
A nonlinear relationship between unemployment and human capital – evidence from African countries
July 26, 2017 Editor 0
A nonlinear relationship between unemployment and human capital – evidence from African countries
Atif Awad Abdallh
African J. of Economic and Sustainable Development, Vol. 6, No. 1 (2017) pp. 18 – 31
This study seeks to examine the validity of the assumption that an increase in the average level of human capital for a country over a specific level will result in replacing workers with technology; and, hence, boost the unemployment rate. Using data for 37 African countries from 2000 to 2013, the present study seeks first: to determine the short and long run effects of human capital accumulation on the unemployment rate in Africa. Second, to identify the threshold level of human capital whereby a further rise will boost unemployment rate in the continent. The results of the Arellano-Bond (A-B) GMM technique showed that the relatively high unemployment rate is due to the continent’s excessive human capital accumulation. Most importantly, the magnitude of this effect is likely to be larger in the long run as compared to the short run. These findings imply that Africa’s current education expansion policies will result in further increase in the unemployment rate over time.Categories: Development
Tags: human capital
Analysis of GMO food products companies: financial risks and opportunities in the global agriculture industry The use of a hybrid latent class approach to identify consumer segments and market potential for organic products in Nigeria
Subscribe to our stories
Recent Posts
- Entrepreneurial Alertness, Innovation Modes, And Business Models in Small- And Medium-Sized Enterprises December 30, 2021
- The Strategic Role of Design in Driving Digital Innovation June 10, 2021
- Correction to: Hybrid mosquitoes? Evidence from rural Tanzania on how local communities conceptualize and respond to modified mosquitoes as a tool for malaria control June 10, 2021
- BRIEF FOCUS: Optimal spacing for groundnuts in smallholder farming systems June 9, 2021
- COVID-19 pandemic: impacts on the achievements of Sustainable Development Goals in Africa June 9, 2021
Categories
Archives
Popular Post-All time
- A review on biomass-based... 1k views
- Apply Now: $500,000 for Y... 836 views
- Can blockchain disrupt ge... 817 views
- Test Your Value Propositi... 782 views
- Prize-winning projects pr... 744 views