Lack of adequate jobs and long unemployment duration becomes a challenge for urban youth in Ethiopia. This study empirically examines youth unemployment and its determinants in urban Ethiopia. It aims to examine the incidences and durations of youth unemployment and their determinant factors. In addition to logistic regression model, a nonparametric Kaplan-Meier survival analysis and Cox proportional hazards model are used. The results indicate that both the incidence and duration of youth unemployment is higher in urban Ethiopia. The hazards model shows that the hazard rate of leaving unemployment are significantly related to individual characteristics such as age and educational level of the youth, and labor market factors such as experience and job market information. Gender and regional disparities are observed. Young women exit unemployment much slower than men and the exit rate increases with age. Big and relatively more urbanized regions have a higher incidence and longer duration of unemployment spells than the small regions. Finally, based on the results, the study suggests that there is a need to adopt target policies that will promote skills and employment opportunities for the youth. Providing entrepreneurship training and startup capital to encourage youth to create rather than seek jobs is critical in this regard. 1 | INTRODUCTION Human capital theory implies that since substantial investment in human capital should occur in the early working years, joblessness for the young is particularly costly (Dimian, 2011). A spell of unemployment can lead to suboptimal investments in human capital among young people in the short run. It is frequently argued that structural factors, most notably lack of experience and skills as well as labor market regulations, constitute major barriers to employment for young people. Labor market regulations and skills mismatch are likely to be more visible in times of recession or deflation than in times of economic expansion (O'Higgins, 1997). Macroeconomic policies can play an important role in employment generation by alleviating constraints on the capacity of the economy to create jobs (Anyanwu, 2014). An individual is considered to be unemployed when they are without a job in a given period of time and are actively seeking a job. Youth unemployment is one of the key global labor market challenges today. The International Labour Organization (ILO) stated that: "Around one fifth of the world's young people are not in employment, education or training. Despite economic recovery, unemployment remains high, and youth are more likely to be unemployed than adults around the world" (International Labour Organization, 2018, p. 11). The ILO estimates for 2017 show that the
In order to avert global climate change, the promotion of renewable energy is getting more attention from government and policymakers. There are many factors that can account for the determinant of renewable energy development. While the drivers of renewable energy development have been extensively examined, the influence of governance quality on renewable energy development is very scanty. To fill the gap in the literature, this study examines the influence of governance quality on renewable energy development in 42 African countries over the period 1996–2020. The empirical evidence is based on the panel corrected standard errors (PCSE) estimation technique to account for cross-sectional dependence. The results show that the impact of governance quality on renewable energy development is negative and statistically significant. This means that as governance quality increases, renewable energy development decreases. This is not surprising given the fact that governance quality in Africa is substantially low. In other words, the results imply that governance quality in most African countries still promote non-renewable and energy intensive production system.
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