Abstract
The study seeks to find economic variables mediating between unemployment and government expenditure in Nigeria. The indirect effect was tested using the method of difference of coefficient. the findings shoe that only labour force population and inflation showed evidence of partial mediation, although their mediational (indirect) effect are not statistically significant as the P-values of the test of indirect effect are all greater than the level of significance, 0.05. Further studies are recommended to ascertain factors mediating upon government expenditure and unemployment in Nigeria other than economic variables already studied.
Highlights
Unemployment is a very important issue that plays a crucial role in development of economies
Unemployment is described as the number of people in the labour force population that is actively looking for job
The results showed that there is a significant positive impact of Egypt national unemployment, national investment, exchange rate and average per capita share of GDP on the volume of GDP
Summary
Unemployment is a very important issue that plays a crucial role in development of economies. CBO [3] states that persistent high unemployment has wide-ranging consequences It places financial, psychological, and even physical strains on people who are unable to find work and on their families as well; it places budgetary pressures on the federal government and on state and local governments, as tax revenues decline and expenditures increase; and it results in a long-term erosion of skills that will reduce the nation’s productivity and people’s income in the future. A parent’s job loss can lead to worse schooling outcomes for children and, to worse labor market outcomes for those children once they become adults In those and other ways, unemployment is costly for many households, and the adverse effects are probably worse for those unemployed for an extended period
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