Determinants of Urban Youth Unemployment: Evidence from Guder Town, Western Shoa Zone, Ethiopia

Abstract

Unemployment is a global issue that challenging every nation. It represents the underutilization of human capital and it is very important issue that negatively affects the development of the country. The study aimed to identifying the determinants factors responsible for urban youth unemployment: The study adopted a cross sectional data of Urban Employment-Unemployment. The town was purposively selected from the town of west shoa zones. The primary data was collected from 91 sample respondents through interview questionnaire from Guder town proportionally. A descriptive and econometric analysis was employed to meet the main objective of the study. The descriptive analyses result revealed that about 61.5 % of the youth are unemployed while 38.6 % are employed.  Regression results from a binary logit model estimation show that sex, educational level, marital status, skill match and access to credit use of youth are found to be the significant determinants to urban youth unemployment while family prosperity and market information were statistically insignificant to urban youth unemployment in the town. The econometric results suggested the need for the government go aboard on creating jobs through identify employment opportunities and industrialization and mechanization of agriculture.

Keywords: Unemployment, Determinants, Binary logit model, Youth

DOI: 10.7176/RHSS/9-17-07

Publication date:September 30^th 2019