Understanding the Factors Affecting the Unemployment Rate Through Regression Analysis
Understanding the Factors Affecting The Unemployment Rate Through Regression Analysis
An Individual Report Presented to The Faculty of Economics Department
In Partial Fulfillment To The Requirements for ECONMET C31
Submitted to: Dr. Cesar Rufino
Submitted by: Aaron John Dee 10933557
April 8, 2011
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TABLE OF CONTENTS
I. INTRODUCTION A. Background of the Study B. Statement of the Problem C. Objective II. THEORETICAL FRAMEWORK AND RELATED LITERATURE A. GDP B. Average Years in School C. Population D. Literacy Rate III. OPERATIONAL FRAMEWORK A. Model Specification B. List and Description of Variables C. A-priori Expectations IV. METHODOLOGY V. EMPIRICAL RESULTS AND INTERPRETATIONS A. Regression of the Original Model
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B. Summary Statistics C. Testing for Misspecification in the Model D. Testing for Multicollinearity E. Testing for Heteroscedasticity VI. CONCLUSION VII. BIBLIOGRAPHY
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I. INTRODUCTION
A. Background of the Study When we were still kids, we dream of what we want to be in the future. Older people will usually ask us if what we want to be in the future. Most of us will say, they want to be a doctor, lawyer or engineer to name some. We think and think about our career, but once we are already in the college level, we now dream to become successful in life and have a stable job. But with the rate of unemployment here in country continue to increase, there are no guarantee that once we graduated we will have a job immediately. Unfortunately, many still fail to have stable jobs. Some even can’t find a job even though they graduated from top schools. Then we found ourselves ending in the pool of unemployment. Unemployment is indeed a very important issue all over the world. People are getting laid off, some cannot find a job, and the number is increasing. Government wants to achieve full employment but we all know that it will never happen simply because there are
An Individual Report Presented to The Faculty of Economics Department
In Partial Fulfillment To The Requirements for ECONMET C31
Submitted to: Dr. Cesar Rufino
Submitted by: Aaron John Dee 10933557
April 8, 2011
1
TABLE OF CONTENTS
I. INTRODUCTION A. Background of the Study B. Statement of the Problem C. Objective II. THEORETICAL FRAMEWORK AND RELATED LITERATURE A. GDP B. Average Years in School C. Population D. Literacy Rate III. OPERATIONAL FRAMEWORK A. Model Specification B. List and Description of Variables C. A-priori Expectations IV. METHODOLOGY V. EMPIRICAL RESULTS AND INTERPRETATIONS A. Regression of the Original Model
4 4 5 5 6 6 6 7 7 9 9 9 10 12 13 13
2
B. Summary Statistics C. Testing for Misspecification in the Model D. Testing for Multicollinearity E. Testing for Heteroscedasticity VI. CONCLUSION VII. BIBLIOGRAPHY
15 16 17 18 21 22
3
I. INTRODUCTION
A. Background of the Study When we were still kids, we dream of what we want to be in the future. Older people will usually ask us if what we want to be in the future. Most of us will say, they want to be a doctor, lawyer or engineer to name some. We think and think about our career, but once we are already in the college level, we now dream to become successful in life and have a stable job. But with the rate of unemployment here in country continue to increase, there are no guarantee that once we graduated we will have a job immediately. Unfortunately, many still fail to have stable jobs. Some even can’t find a job even though they graduated from top schools. Then we found ourselves ending in the pool of unemployment. Unemployment is indeed a very important issue all over the world. People are getting laid off, some cannot find a job, and the number is increasing. Government wants to achieve full employment but we all know that it will never happen simply because there are
Bibliography: Abuqamar, M., Coomans, D., & Louckx, F. (2011, January). Correlation between socioeconomic differences and infant mortality in the Arab World (1990-2009). International Journal of Sociology and Anthropology Vol. 3(1) , 15-21. Gujarati, & Porter. (2009). Basic Econometrics. USA: John Weily and Sons. Hussain, T., Siddiqi, M., & Iqbal, A. (2010). A Coherent Relationship between Economic Growth and Unemployment: An Empirical Evidence from Pakistan. International Journal of Human and Social Sciences , 332-339. Literacy Fact Sheet. (n.d.). Retrieved from Northwest Territories Literacy Council: http://www.nwt.literacy.ca/litfacts/LiteracyandUnemployment.pdf Rafiq, M., Iftikhar, A., Asmat, U., & Zahoor, K. (n.d.). DETERMINANTS OF UNEMPLOYMENT:A CASE STUDY OF PAKISTAN ECONOMY (1998-2008). Abasyn Journal of Social Sciences Vol.3. No.1 , 17-24. The effects of education on the natural rate of unemployment. (2008, 4 1). Retrieved 4 7, 2011, from Goliath: Business knowledge on demand: http://goliath.ecnext.com/coms2/gi_0199-8128098/The-effects-of-education-on.html Weisberg, Y., & Meltz, N. M. (n.d.). Education and Unemployment in israel, 1976-1994: Reducing the Anomaly. 22