IDEAS home Printed from https://ideas.repec.org/a/ids/ajesde/v6y2017i1p18-31.html
   My bibliography  Save this article

A nonlinear relationship between unemployment and human capital - evidence from African countries

Author

Listed:
  • Atif Awad Abdallh

Abstract

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.

Suggested Citation

  • Atif Awad Abdallh, 2017. "A nonlinear relationship between unemployment and human capital - evidence from African countries," African Journal of Economic and Sustainable Development, Inderscience Enterprises Ltd, vol. 6(1), pages 18-31.
  • Handle: RePEc:ids:ajesde:v:6:y:2017:i:1:p:18-31
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=82796
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ajesde:v:6:y:2017:i:1:p:18-31. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Carmel O'Grady) The email address of this maintainer does not seem to be valid anymore. Please ask Carmel O'Grady to update the entry or send us the correct email address. General contact details of provider: http://www.inderscience.com/browse/index.php?journalID==382 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.