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Poverty And
Unemployment In Nigeria Causes Effects And Remedies
ABSTRACT
This study
is an econometric method of research that analyzed the causes, effects and
remedies of poverty and unemployment in Nigeria. It covered a period of 20
years 1991-2010 hence a time series analysis descriptive statistics and
regression model was used to estimate the models and it was made use of
secondary data which was fitted to the regression equation by the method of
Ordinary Least Square (OLS).the major discovery here is that unemployment rate,
the level of education, the level of agricultural activities, health sector,
population rate are the determinants of poverty rate in Nigeria. Finally this
research work shows that the level of poverty and unemployment can be
controlled and reduced with the use of human capital development to accelerate
unemployment and poverty reduction in Nigeria.
TABLE OF
CONTENT
Title Page
Approval
Page
Dedication
Acknowledgement
Abstract
Table of
content
CHAPTER ONE:
INTRODUCTION
1.1
Background of the Study
1.2
Statement of the problem
1.3 Study
Objectives
1.4 Research
Justification
1.5 Scope of
Study
1.6
Hypothesis Formulation
1.7
Limitation of the study
1.8
Definition of terms
CHAPTER TWO:
REVIEW OF RELATED LITERATURE
2.1 Concept and definition of Poverty
and Unemployment
2.2 Conceptual theoretical issues
2.3 Empirical literature
2.4 Causes of poverty and unemployment
in Nigeria
2.5 Effects of poverty and unemployment
2.6 Overview
of programmes aimed at poverty and unemployment reduction
2.7 Poverty, unemployment, economic
growth and development
CHAPTER
THREE: RESEARCH METHODOLOGY.
3.1Method of
data analysis
3.2
Definition and justification of variables
3.3 Aprior
expectation
8
3.4 Model
specification
3.5Nature
and sources of data
3.6
Estimation procedure
3.7
Techniques of evaluating the results
3.7.1 Evaluation Based on Statistical Criteria
First Order Test.
3.7.2 Evaluation Based on Statistical Criteria
Second Order Test
CHAPTER
FOUR: EMPERICAL RESULTS
4.1Battery
test
4.1.1Unit
Root Test Analysis: 4.1.2 Cointeration Test:
4.2 Presentation and Interpretation of Result
4.3 Economic Apriori Criteria
4.4 Statistical Criteria {First order
test}
4.4.1.
Coefficient of Multiple Determinants {R2}
4.4.2.
The-test Student‟s T
4.4.3.
F-Statistics:
4.5 Econometric Criteria.
4.5.1. Test
for Autocorrelation
4.5.2. Normality Test for
Residual
4.5.3. Test
for Heteroscedasticity 4.5.4 Test for Multicollinearity CHAPTER FIVE:
5.1 Summary
5.2
Conclusion
5.3
Recommendation Bibliography
9
Appendix
10
CHAPTER 1
INTRODUCTION
1.1
BACKGROUND OF STUDY
Poverty and
unemployment an identical bane is a global trend which affects people in
various depths and levels at different times and phases of existence. The
extent of association between poverty and in unemployment in the developing
countries is often a subject of considerable debate. There is actually no
nation that is absolutely free from poverty and unemployment. The major
difference is the degree and pervasiveness of this similar blight.
Nigeria is
the most populous country in Africa and the eight in the world with a
population of 140 million by 2006 census with a nominal GDP of $207. Billion
per capita income of $1401 it has tyrants. As a result second largest economy
in Africa (salami 2002). As impressive as the above figures may appear youth
unemployment has been one of the major problems facing Nigeria. A high level of
un and underemployment is one of the critical socio-economic problems facing
Nigeria. While the labor force with an increasing proportion of youth
employment opportunities is inadequate to absorb labor market entrants. As a result,
youth are especially affected by unemployment. Moreover, young people are more
likely to be employed in jobs of low quality. Underemployed working long hours
for low wages, engaged in dangerous work or receive only short term and/or
informal employment arrangements. The inadequate employment
11
situation of
youth has a number of socio-economic, political and moral consequences. This
has resulted in poverty in Nigeria which is chronic and rising. The share of
the total population living below the$1 (one dollar) a day
threshold of
46 percent is higher today than in 1980 significance improvements in the growth
of GDP in recent years
Unemployment
and poverty are so intertwine that one can easily confuse one for the other.
Although, it is possible for one to be employed and still remain poor, this is
to be a case of underemployment. Unemployment and underemployment reflect the
failure to make use of an important factor of production, labor, for fostering
economic growth in Nigeria. Low returns to labor as well as high unemployment
indicates poverty. Poverty makes it difficult to make investments in education
and health that would increase ones productivity. The social aspects of the
problem that lies in association of unemployment with social exclusion and a
sense of hopelessness. Structural unemployment and wide spread poverty are
believed to be the basis for the activities of miscreants such as militant
youth in the Niger Delta and the present deadly Boko Haram in northern Nigeria
upsetting the seemingly peaceful and stable political situation . The activity
of BokoHaram has resulted in many deaths and destruction of property worth
millions of dollars.
Unemployment
in Nigeria is defined as the proportion of labor force that was available for
work but do not work. In the week preceding the survey period for at least 39
hours. Official figures from the bureau of statistics puts the figure of
unemployed at 19.70 per cent about 30 million but this figure still did not
include about 40 million others captures in world bank statistics in 2009. By
implication it mean
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