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Public expenditure on education, educational attainment and unemployment nexus in India: an empirical investigation

Author

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  • Deepti Singh
  • Shruti Shastri

Abstract

Purpose - The purpose of this paper is to examine the nexus among public expenditure allocated to education, educational attainment at secondary level and unemployment rate in India for the period 1987–2017. Design/methodology/approach - The study employs autoregressive distributed lags (ARDL) bound testing approach suggested by Pesaranet al.(2001) to find the long-run relationship among the variables. The causal linkages are investigated through block exogeneity test based on vector error correction model. Findings - The empirical results indicate that educational attainment proxied by gross enrolment ratio at secondary level of education negatively affects unemployment rate in long run as well as in short run. However, public expenditure on education is ineffective in influencing both educational attainment and unemployment rate. Originality/value - The study is the first empirical effort to identify the causal nexus among public expenditure on education, educational attainment and unemployment in the context of India. Peer review - The peer review history for this article is available at:https://publons.com/publon/10.1108/IJSE-06-2019-0396

Suggested Citation

  • Deepti Singh & Shruti Shastri, 2020. "Public expenditure on education, educational attainment and unemployment nexus in India: an empirical investigation," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 47(5), pages 663-674, May.
    • Handle: RePEc:eme:ijsepp:ijse-06-2019-0396
    DOI: 10.1108/IJSE-06-2019-0396
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    Citations

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    Cited by:

    1. Orkun ÇELIK & Elif ERER, 2021. "The Role of Gender in the Government Expenditure and Unemployment Nexus: An Investigation at Regional Level for Turkey," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 112-128, June.
    2. Muammer Maral & Furkan Yildiz & Yusuf Alpaydin, 2021. "An Analysis of the Relationship between Higher Education Expenditures and Youth Unemployment in Turkey," Journal of Economic Policy Researches, Istanbul University, Faculty of Economics, vol. 8(2), pages 173-197, July.
    3. Khusaini Khusaini & Heni Cahya Ramdani & Estu Niana Syamiya & Iis Aisyah, 2022. "Does the government expenditure on education and family income boost educational expansion?: Lesson from panel FMOLS," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 24(2), pages 89-105, December.

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