Much of the problems of unemployment in the past have been placed on the inadequacy of the country’s schooling system to be able to impact needed skills. Empirical and theoretical evidence is overwhelmingly in support of the significant role of public expenditure in education having a multiplier effect on employment. Empirical evidence shows that this is not consistent in a macroeconomic framework. Government has been indicted for not doing enough to support education with its budgetary shortcomings to the sector. This study investigates the impact of government spending on unemployment in Nigeria. OLS estimates adopted for secondary data regressed over the 27 years for unemployment, federal government recurrent expenditure on education and economic growth indicated that while growth is significant and indeed influence unemployment negatively in line with our a-priori expectation, it is not the same for the impact of public expenditure on education. Our findings from this were that while Nigeria’s educational capacity has increased, its impact is shallow as the economy is unable to absorb the graduates. To address this anomaly, the government will need to enhance its effectiveness through creating adequate channels for enterprise growth and sustainability which will increase the latter’s capacity to employ more labour.
Much of the problems of unemployment in the past has been placed on the inadequacy of the country’s schooling system to be able to impact needed skills. Empirical and theoretical evidences are overwhelmingly in support of the significant role of public expenditure in education having multiplier effect on employment. Empirical evidence shows that this is not consistent in a macroeconomic framework. Government has been indicted of not doing enough to support education with its budgetary shortcomings to the sector. This study investigates the impact of government spending on unemployment in Nigeria. OLS estimates adopted for secondary data regressed over 27-year period for unemployment, federal government recurrent expenditure on education and economic growth indicated that while growth is significant and indeed influence unemployment negatively in line with our a-priori expectation, it is not the same for the impact of public expenditure on education. Our findings from this was that while Nigeria’s educational capacity has increased, its impact is shallow as the economy is unable to absorb the graduates. In order to address this anomaly, government will need to enhance its effectiveness through creating adequate channels for enterprise growth and sustainability which will increase the latter’s capacity to employ more labour. Nigeria, unemployment, public expenditure, education, human capitalJEL Classification: E62, H52, I22, I28
It is common knowledge that the success of an economy rests on the strength of its entrepreneurs. Present-day challenges make it imperative for countries in the same bracket as Nigeria to deemphasize reliance on oil and government for social crumbs, to embrace innovative activities and deepen small and medium-scale enterprises (SMEs). SMEs are important drivers of economic growth but they face significant challenges as obtained in Nigeria where infrastructures such as power, transportation and financing needed to make entrepreneurship work seldom exists. With a high unemployment rate, young Nigerians are required to embrace entrepreneurship. The aim of this paper is to present the Nigerian entrepreneur within the country’s challenging business environment as a true definition of an entrepreneur despite the general definition. We presented a set of questions and gathered feedback through a set of questionnaires administered using purposive sampling on 6 trade associations in Iwo Town, Osun state, Nigeria.
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