Abstract

Youth unemployment is one of the major and burring issues in Pakistan. This study is examining the determinants of youth unemployment in Pakistan for the period of 1991 to 2016. In this study, the model is made of one dependent variable (unemployment) and five independent variables (Population, Foreign Direct Investment, Inflation, Wage Rate and Government Expenditure). The study employed the Ordinary Least Square Method (OLS), Fully Modified Least Squares (FMOLS) and Robust Least Square (RLS). The result shows that foreign direct investment, inflation and government expenditure have significant impact on unemployment in Pakistan during the period under the study. Though, population growth and wage do not show important association with the unemployment rate during the period under this study. In this study Microsoft Excel and E view software is used to analyze the data.

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