Determinants of youth unemployment in Southern Ethiopia: Evidence from Duna District, Ethiopia

https://doi.org/10.35912/ijfam.v4i4.1188
Published: Mar 16, 2023

Abstract:

Purpose: Unemployment is a big problem both in developed and less developed countries. This study was aimed at investigating the determinants of youth unemployment in Duna district using cross-sectional survey data gathered in 2020. It is assumed to be a major macroeconomic problem in deriving economic growth and food security. Reducing youth unemployment is crucial to achieving sustainable economic development and alleviating poverty.

Research methodology: Multi-stage sampling methods were developed to select the sample from a given population. Through considering the availability of youth unemployed, six kebeles with a sample youth of 361 were selected. Primary and secondary sources of data were used. Descriptive analysis and binary logistic regression were employed for the data analysis.

Results: The results of binary logit regression revealed that youth unemployment was significantly affected by age, sex, educational status (secondary and higher education), cultivated land size, marital status, credit use, information use, family wealth, infrastructure, work experiences, and migration.

Limitations: This research is limited by the scope, men, and women young unemployed were not equally studied. Without inclusion, women in the studies may not ensure sustainable economic development and alleviate the problem of young unemployment and poverty.

Contribution: Ministry of youth, sports and culture, microfinance institutions, and other concerned bodies should give important attention to youth unemployment which is a major problem in achieving economic growth and alleviating poverty. Reduction in the level of youth unemployment would consequently improve youth income and which in turn improve living standards.

Keywords:
1. Adults
2. Youth unemployment
3. Binary Logit Model
4. Duna district
Authors:
Negese Tamirat
College of Business and Economics, Jimma University, Ethiopia
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How to Cite
Tamirat, N. (2023). Determinants of youth unemployment in Southern Ethiopia: Evidence from Duna District, Ethiopia. International Journal of Financial, Accounting, and Management, 4(4), 509–520. https://doi.org/10.35912/ijfam.v4i4.1188
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Vol. 4 No. 4 (2023): March
Articles
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  1. Abadli, R., Kooli, C., & Otmani, A. (2020). Entrepreneurial culture and promotion of exporting in Algerian SMEs: Perception, reality and challenges. International Journal of Entrepreneurship and Small Business, 41(2), 227-240.
  2. Ahmed, H., Khan, M., Mahmood, I. (2011). Entrepreneurship, unemployment, and economic growth. Business Management Review, 1(18), 1-6.
  3. Al-Abri, N., & Kooli, C. (2018). Factors affecting the career path choice of graduates: A case of Omani. Int. J. Youth Eco, 2, 105-117.
  4. Alhawarin, I. M., & Kreishan, F. M. (2010). An analysis of long-term unemployment (LTU) in Jordan’s labor market. European journal of social sciences, 15(1), 56-65.
  5. Amanuel, D. (2016). Determinants of youth unemployment; Evidence from Ethiopia. Global Journal of Human-Social Science: A Arts and Humanities-Psychology, 16.
  6. Asalfew, A. G. (2011). Demographic and Socio-Economic Determinants of Youth Unemployment in Debere Birhan Town, North Showa Administrative Zone, Amhara National Regional State. Unpublished Master's Thesis, Addis Ababa University. Asalfew Abera Gebere.
  7. Bokhari, A., Alothmany, N., & Magbool, S. (2012). Entrepreneurship and unemployment in the Kingdom of Saudi Arabia. Paper presented at the Saudi Economy Conference: Challenges and Opportunities.
  8. Contini, B. (2010). Youth employment in Europe: institutions and social capital explain better than mainstream economics. Available at SSRN 1545145.
  9. CSA. (2013). Statistical Report on National Labour Force Survey. Ethiopia: Addis Ababa.
  10. Dejene, T., Mansingh, J. P., & Warkaw, L. (2016). Determinants of Youth Unemployment: The Case of Ambo Town, Ethiopia. International Journal of Economics and Business Management, 2(2), 162-169.
  11. Du Toit, R. (2003). Unemployed youth in South Africa: The distressed generation?
  12. Echebiri, R. (2005). Characteristics and determinants of urban youth unemployment in Umuahia, Nigeria: Implications for rural development and alternative labor market variables. Paper presented at the A paper presented at the isser/cornell/world bank conference on “shared growth in Africa” held in Accra, Ghana, July.
  13. Elder, S. (2010). Global employment trends for youth: Special issue on the impact of the global economic crisis on youth: International Labour Office.
  14. Faria, J. R., Cuestas, J. C., & Mourelle, E. (2010). Entrepreneurship and unemployment: a nonlinear bidirectional causality? Economic Modelling, 27(5), 1282-1291.
  15. Gebeyaw, T. (2011). Socio-demographic determinants of urban unemployment: the case of Addis Ababa. Ethiopian Journal of Development Research, 33(2), 79-124.
  16. Getnet, A. (2014). Socio-economic & demographic determinants of graduate youths’ unemployment: In the case of Debre Markos town, Amhara Regional State. Master Thesis, University of Gonder.
  17. Godfrey, M. (2003). Youth employment policy in developing and transition countries: Prevention as well as cure: Citeseer.
  18. Guarcello, L., & Rosati, F. (2007). Child labor and youth employment: Ethiopia Country Study. World Bank Social Protection Working Paper Series, Washington DC: World Bank, 704(2), 1-87.
  19. Gujarati, N. (2004). Basic Econometrics, 4th Edition, The McGraw-Hill Companies.
  20. Haile, G. A. (2008). Determinants of self-employment in urban Ethiopia: Panel data based evidence, PSI Discussion Paper (new series); 1.
  21. Kellow, N., Ayele, G., & Yusuf, H. (2010). Enabling the private sector to contribute to the reduction of urban youth unemployment in Ethiopia: Addis Ababa Chamber of Commerce and Sectoral Associations.
  22. Kooli, C. (2017). Transformation du système éducatif Omanais, quarante ans de formation de capital humain: évolution et performance. Paris, EHESS.
  23. Kooli, C., & Al Muftah, H. (2020). Female labor force participation in the Middle East and North African Countries: constraints and levers. Brazilian Journal of Policy and Development, 2(1), 58-90.
  24. Maqbool, M. S., Mahmood, T., Sattar, A., & Bhalli, M. (2013). Determinants of unemployment: Empirical evidences from Pakistan. Pakistan Economic and Social Review, 191-208.
  25. Messabia, N., Kooli, C., & Marguerite, N. (2020). Technological Change In Banking As Perceived By Employees:, The Experience Of A Canadian Branch. ???? ???????? ??????? ?????????? ?????????, 639. doi:10.35392/1772-007-002-033
  26. Nganwa, P., Assefa, D., & Mbaka, P. (2015). The nature and determinants of urban youth unemployment in Ethiopia. Nature, 5(3), 197-203.
  27. Office, I. L. (2012). Global employment trends for youth 2012: ILO Publications.
  28. Olayinka, A. A. (2020). Financial statement analysis as a tool for investment decisions and assessment of companies? performance. International Journal of Financial, Accounting, and Management, 4(1), 49 – 66. https://doi.org/10.35912/ijfam.v4i1.852.
  29. Urban labor markets in Ethiopia: Challenges and prospects. (2007).
  30. Wibawa, A., Wilopo, W., & Abdillah, Y. (2016). Pengaruh good corporate governance terhadap penghindaran pajak (studi pada perusahaan terdaftar Di indeks bursa sri kehati tahun 2010-2014). Brawijaya University.
  31. Yamane, T. (1967). Statistics, an Introductory Analysis, 2nd Ed., New York: Harper and Row.