Dynamic Relationship between Corruption and Youth Unemployment: Empirical Evidences from a System GMM Approach

Bouzid, Bechir Naier

doi:10.1596/1813-9450-7842

Cited by 32 publications

(39 citation statements)

References 16 publications

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“…In addition, Tomίc (2016) by analyzing the determinants of youth unemployment in 28 countries of the European Union and over the period 2002 to 2014; shows that the level of youth unemployment is more pronounced in countries with low economic growth, more income inequality, with a high public debt, and a low level of infrastructure. Apart from the economic cycle and economic growth of a country or region, youth unemployment rates are influenced by the labour market dysfunctionalities (minimum wage), labour market reforms (Condratov, 2014) and corruption (Bouzid, 2016;Tomic, 2016).…”

Section: Literature Reviewmentioning

confidence: 99%

“…The labour market reforms appear to play an important role in explaining the level of employability of youth in a region or geographic entity. Bouzid (2016), in analyzing the causal relationship between the level of corruption and the level of youth unemployment, seeks to show how corruption through bribes in state institutions, can generate employment opportunities, and therefore call into question the efficiency of the workforce in enterprises. With corruption, young people, risky for companies, less qualified, can claim jobs or positions of high quality.…”

Section: Literature Reviewmentioning

confidence: 99%

“…That is why, since the 1980s, the fight against corruption has been at the forefront of international policies and development debates. Theoretically, it is quite demonstrable that the institutional environment can influence the economic and social development of a geographic entity (Ali and Saha, 2016;Bouzid, 2016).…”

Section: Literature Reviewmentioning

confidence: 99%

“…To these traditional determinants, are added, some specific determinants of youth unemployment rate such as the economic cycle and economic growth (Hurd and Rohwedder, 2010;Katz, 2014), migration (Tomić, 2016), and labour market dysfunctionalities (Condratov, 2014). Finally, the literature reveals the effect of corruption on the dynamics of the unemployment rate (Bouzid, 2016).…”

Section: Literature Reviewmentioning

confidence: 99%

“…More recently, theory on the determinants of unemployment within regions has focused more on institutional determinants. Indeed, it is increasingly clear that the institutional environment of a country or region can influence the economic activity and the unemployment rate (Asiedu and Freeman, 2009;Ali and Krammer, 2016;Saha, 2016, 2017;Bouzid, 2016). Thus, since the works of Myrdal (1968), Mauro (1995Mauro ( , 1997Mauro ( , 1998 and Tanzi (1998aTanzi ( , 1998b, the literature has identified the corruption, the most recurrent problem when we refer to the economic and social development, as a factor that can influence the level of the unemployment.…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

Does Corruption Matter for Unemployment in SADC Countries?

Adjor

Kebalo²

2018

Review of Economic and Business Studies

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Is corruption, the main source of unemployment in the SADC countries? Do the effects of corruption outweigh those of income inequalities, human capital and government revenues in explaining the unemployment rate within the SADC area? Through these questions, the objective of our paper is to propose targeted policies that can enable decision-makers to reduce the unemployment rate within the SADC area. Through a panel vector autoregressive model, our empirical investigation on a sample of nine (09) SADC countries reveals that the education level and income inequalities contribute the most to explain the total unemployment rate. However, for the youth unemployment, corruption is the main factor followed by the level of education. To reduce total unemployment in the area, SADC countries need to reduce income inequalities and the mismatch between education and the labour market needs and/or countries' development programs. For the youth unemployment, the reduction of corruption to all its forms should be the priority of political and economic decisionmakers.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Does Corruption Matter for Unemployment in SADC Countries?

Adjor

Kebalo²

2018

Review of Economic and Business Studies

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Corruption: Governance challenge towards reducing unemployment in Nigeria

Fagbemi

Fajingbesi²,

Osinubi

2023

Journal of Public Affairs

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The study examines the possibility of having a very low rate of unemployment in Nigeria, if there is a reduced rate of corruption in the long‐term. While using cointegration regressions and Vector Error Correction Mechanism (VECM) over the period 1996–2020, it is affirmed that corruption could increase unemployment rate in the long run. The two corruption indicators employed (control of corruption and corruption index) are found to have a substantial effect on unemployment rate. Further evidence confirms that corruption and unemployment are cyclically interdependent. Findings indeed stress that a high level of corruption is harmful to employment growth. On the other hand, in the absence of sufficient job opportunities, rent‐seeking government officials would be more interested in collecting bribes from job seekers, which results in sustained unlawful practices among the public officials. Thus, adopting effective corruption‐control measures is critical. It is therefore suggested that to effectively tackle corruption incidents, there should be incentives for citizens or public officials to report bribery and the process of reporting corruption incidents should be further simplified. Strengthening anti‐corruption agencies and developing a sound legal framework that promotes a culture of lawfulness and impeccable practices in the public sector are central.

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Corrupting Politicians to Get Out of Unemployment: Empirical Evidence from Africa

Ngono

2022

J Knowl Econ

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Dynamic Relationship between Corruption and Youth Unemployment: Empirical Evidences from a System GMM Approach

Cited by 32 publications

References 16 publications

Does Corruption Matter for Unemployment in SADC Countries?

Does Corruption Matter for Unemployment in SADC Countries?

Corruption: Governance challenge towards reducing unemployment in Nigeria

Corrupting Politicians to Get Out of Unemployment: Empirical Evidence from Africa

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