Unemployment in Urban Ethiopia: determinants and Impact on Household Welfare

Course ID
Ethiopian Economics Association (EEA)
Abebe Fikre Kassa

Data from the 2004 wave of the Ethiopian Urban Socio Economic Survey on four major cities of Ethiopia is used to investigate the determinants of unemployment in urban Ethiopia and its impact on household welfare. Regression results from a binary probit model estimation show that urban unemployment in Ethiopia in 2004 is determined by age, marital status, education beyond primary school and living in the capital Addis Ababa. Moreover, the results from OLS regression of consumption indicate that unemployment adversely affects household consumption expenditure and hence household welfare. One more unemployed household member results in a 4.6 percent decline in per capita real consumption expenditure available to the household. Since unemployment negatively affects household welfare, efforts aiming at reducing unemployment will most likely improve welfare. Mechanisms to reduce household size such as family planning are also recommended for better household welfare via their effect on household consumption

Corporate Author:Demirew Getachew; Getenet Alemu; Worku Gebeyehu (Editors) and Ethiopian Economic Association
Publisher:Ethiopian Economic Association
Primary Descriptors:consumption, OLS

Secondary Descriptor:welfare, probit

Geographic Descriptors:Ethiopia
Broad Subject heading:unemployment
Call Number:330.963 PRO 2013
Serial Key Title:Proceeding of the Tenth International Conference on the Ethiopian Economy
Publication catagory: International Conference
Content type: EEA Publication
Publication date:2013-06-03 00:00:00
Conference Place: EEA Multi-Purpose Building Conference Hall, Addis Ababa
Place of publication: Addis Ababa, Ethiopia
Type of material:Book
Current frequency: Annually
Author: Abebe Fikre Kassa
Conference date:July 19 – 21, 2012

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