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Shadow economy and educational systems in Africa

Author

Listed:
  • Alphonse Noah

    (EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique)

  • Joseph Keneck Massil

Abstract

Using data from a sample of 30 countries over the period 2000-15, we find evidence that shadow economy is higher in countries where educational system is focused on general programs. This finding highlights the mismatch between the needs of the private sector in skilled workers and what the educational system offers in some countries. In addition, we show that vocational education negatively affects the size of the shadow economy, suggesting that it enhances students' opportunities of finding gainful employment in formal sector. We also find that shadow economy in Africa is related to financial development, public investment as well as demographic dividend. In terms of public implications, our findings call for the need for a balanced educational system between general and vocational education programmes in order to reduce the size of the shadow economy in Africa.

Suggested Citation

  • Alphonse Noah & Joseph Keneck Massil, 2019. "Shadow economy and educational systems in Africa," Post-Print hal-02157266, HAL.
    • Handle: RePEc:hal:journl:hal-02157266
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    Cited by:

    1. Ndoya, Hermann & Okere, Donald & Belomo, Marie laure & Atangana, Melissa, 2023. "Does ICTs decrease the spread of informal economy in Africa?," Telecommunications Policy, Elsevier, vol. 47(2).
    2. Ada Aliaj & Rovena Vangjel, 2023. "Financial Development and Its Impact on the Shadow Economy in Albania," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 12, May.
    3. Melingui Bate Adalbert Abraham Ghislain, 2022. "Does the diffusion of information and communication technologies affect the shadow economy in Africa?," African Development Review, African Development Bank, vol. 34(4), pages 513-526, December.
    4. Folorunsho M. Ajide, 2021. "Shadow economy in Africa: how relevant is financial inclusion?," Journal of Financial Regulation and Compliance, Emerald Group Publishing Limited, vol. 29(3), pages 297-316, April.

    More about this item

    Keywords

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    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • I2 - Health, Education, and Welfare - - Education

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