2018
DOI: 10.4236/me.2018.95060
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The Sources of Unemployment in Lesotho

Abstract: Lesotho's unemployment, poverty and income inequality and other social ills remain pervasive in the face of non-inclusive growth. Using structural vector autoregressive framework and annual time series data spanning from 1980 to 2014, this paper investigates the sources of the high unemployment in Lesotho, a small landlocked developing country whose currency is pegged to that of South Africa. The impulse response functions, forecast error variance decomposition and historical decomposition jointly revealed tha… Show more

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Cited by 14 publications
(10 citation statements)
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“…The United Nations categorized Lesotho as an underdeveloped country with persistently high unemployment rates (23-28%) over the last 10 years [5]. In 10 urban centres in Lesotho, nearly a third of the population was receiving food or cash for living assistance from friends and family outside the Kingdom to provide living assistance.…”
Section: Introductionmentioning
confidence: 99%
“…The United Nations categorized Lesotho as an underdeveloped country with persistently high unemployment rates (23-28%) over the last 10 years [5]. In 10 urban centres in Lesotho, nearly a third of the population was receiving food or cash for living assistance from friends and family outside the Kingdom to provide living assistance.…”
Section: Introductionmentioning
confidence: 99%
“…Some of them live with relatives, some rented accommodation, while others live in school hostels (boarding accommodation). Lesotho has a high rate of unemployment (23.6% in 2018: Damane & Sekantsi, 2018) and most parents work in the fabric factories in Maseru and Maputsoe (Leribe District).…”
Section: Theoretical Framework and Literature Reviewmentioning
confidence: 99%
“…Ogbokor's finding was confirmed by Eita and Ashipala (2010), who also reported the PC constituents' higher sensitivity to investment. Meanwhile, the PC phenomenon literature is scarce for Lesotho, though Damane and Sekantsi (2018) hinted at the inflation-unemployment dynamics by reporting that a positive shock to inflation has an immediate and significant impact on unemployment for up to 3 years. Lastly, the PC relation is studied most extensively in South Africa.…”
Section: Cma-specific Evidencementioning
confidence: 99%
“…For all the CMA countries, data was missing from 1980 to 1990 and a method of backward forecasting was used to compute missing numbers. The backcasting methodology used was adopted from Damane and Sekantsi (2018).…”
Section: Notesmentioning
confidence: 99%