Empirical Study on the Determinants of Unemployment Rate in Algeria

Authors

  • Chadlia Amel

Keywords:

Unemployment rate, explanatory variables, Algeria

Abstract

The purpose of this empirical study is to analyze the impact of specific variables on Algeria’s unemployment rate between 1995 and 2021. To achieve this, we utilized the Vector Auto Regressive (VAR) model. The variables considered in our analysis encompass the unemployment rate, economic growth rate, entrepreneurial activity, Human Development Index, and the number of internet users.

This paper is structured into two principal sections. The first section provides a literature review concerning the factors influencing the unemployment rate. In the second section, we present our empiricalstudy to establish the relationship between the unemployment rate andthe other variables.

The main results of this study demonstrate that economic growth rate, entrepreneurial activity, and the Human Development Index contributeto a reduction in Algeria’s unemployment rate. However, the variable related to internet usage intensity was not included in the final equationof the VAR3 model. Even in Granger causality tests, its impact was found to be statistically insignificant.

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References

ILO, « The economically active population, employment, unemployment and underemployment »,13th ICLS, 1982

BENKILA, S., & BOUDEFA, T. (2021). Unemployment and employment chronology in Algeria post-independence. AL MIAAR,25(06), 592-610.

Benyahia, S. (2018). Unemployment in Algeria: Characteristics, Causes Revue

de l’Ijtihad D’études Juridiques et Economiques, 13-38.

Davide Furceri , (2012), « Unemployment and Labor Market Developments in Algeria », IMF Working Paper Middle East andCentral Asia Department.

Garabedian S., Hoarau JF.,(2011) « Un indicateur de développement humain soutenable pour les petits espaces insulaires en développement », Revue d’Économie Régionale & Urbaine, 2011/4 (octobre), p .p 651-680

LEBED, I., & BECHERAIR, A. (2021). the effect of unemployment rate on the underground economy in algeria: an empirical study using the granger causality analysis. Business Sciences Review, 20(1), 53-70.

MOKRANI, H. (2022). Impact of the most important macroeconomic indicators on the unemployment rate. Algerian Journal of Human and Social Sciences, 373- 392.

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Published

2023-09-30

How to Cite

Amel, C. (2023). Empirical Study on the Determinants of Unemployment Rate in Algeria. The Journal of Contemporary Issues in Business and Government, 29(3), 552–573. Retrieved from https://cibgp.com/au/index.php/1323-6903/article/view/2613

Issue

Vol. 29 No. 3 (2023): The journal of contemporary issues in business and government

Section

Articles

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