Government education spending reduces graduate unemployment rates in Ethiopia.
The researchers studied how government spending on education in Ethiopia affects the rate of unemployment among graduates. They used data from 1991 to 2019 and found that inflation and education spending have a significant impact on graduate unemployment in the long run. Inflation rates increase unemployment, while government spending on education decreases it. Economic growth, however, has little effect on graduate unemployment. The researchers recommend investing more in education to improve skills, productivity, and entrepreneurship in Ethiopia.