Does investment in education and health impact youth employment outcomes? Evidence from Sub-Saharan Africa

Figures & data

Table 1. Pesaran cross-sectional dependence test result

Variable	CD-test	P-value	Corr	Abs(corr)
YE_EM	−1.04	0.298	0.008	0.356
GDPpc	110.15	0.000	0.822	0.865
PGR	0.52	0.600	0.004	0.490
PHX	35.90	0.000	0.268	0.424
GHX	12.73	0.000	0.095	0.353
PE	15.76	0.000	0.118	0.425
SE	11.99	0.000	0.090	0.394
TE	12.15	0.000	0.091	0.449

Table 2. Result for Pesaran’s cross-sectional augmented dickey-Fuller (CADF) test

Full sample estimate (CV10 = −2.540, CV5 = −2.610, CV1 = −2.730)
	Level				Difference
Variable	t-bar	Z[t-bar]	p-value	Int.	t-bar	Z[t-bar]	p-value	Int.
YE_EM	−2.137	−1.179	0.881	I(1)	−2.700	−2.650	0.004	I(1)
GDPpc	−2.080	1.567	0.941	I(1)	−2.921	−4.156	0.000	I(1)
PGR	−2.231	0.534	0.703	I(1)	−2.640	−0.246	0.012	I(1)
PHX	−2.313	−0.019	0.492	I(1)	−2.995	−4.658	0.000	I(1)
GHX	−2.630	−2.177	0.015	I(0)	−2.900	−4.015	0.000	I(1)
PE	−2.540	−2.015	0.022	I(0)	−2.821	−3.477	0.000	I(1)
SE	−2.600	−1.973	0.024	I(0)	−3.252	−6.408	0.000	I(1)
TE	−2.708	−2.703	0.003	I(0)	−3.540	−6.812	0.000	I(1)

Table 3. Westerlund ECM panel co-integration test results

			YE_EM vs regressors
Regressor	Stat.		Value		Z-Value	P-value
GDPpc	Gt Ga Pt Pa		−9.295 –9.674 -18.569 –14.809		−54.647 –2.114 -6.065 –6.199	0.000 0.983 0.000 0.000
PGR	Gt Ga Pt Pa		−13.766 –10.501 -14.966 –9.187		−89.852 –1.328 -1.867 –0.247	0.000 0.908 0.031 0.402
PHX	Gt Ga Pt Pa		−4.858 –9.354 -17.123 –9.071		−19.701 2.418 –4.380 -0.124	0.000 0.992 0.000 0.451
GHX	Gt Ga Pt Pa		−5.699 –4.454 -16.420 –13.365		−26.324 –7.078 -3.561 –4.671	0.000 1.000 0.000 0.000
PE	Gt Ga Pt Pa		−5.736 –10.173 -19.688 –13.933		−26.621 –1.640 -7.368 –5.272	0.000 0.950 0.000 0.000
SE	Gt Ga Pt Pa		−5.318 –5.727 -19.352 –11.898		−23.329 –5.867 -6.976 –3.117	0.000 1.000 0.000 0.001
TE	Gt Ga Pt Pa		−4.939 –6.360 -14.195 –11.150		−20.343 –5.266 -0.970 –2.326	0.000 1.000 0.166 0.010

Table 4. Results of the hausman test

	YE_EM Model
	Coefficients		Difference	Sqrt(diag (V_b-V_B))
	FE (b)	RE (B)	(b)-(B)	S. E.
GDPpc	−0.0000687	−0.0000803	0.0000115	0.00000696
PGR	−0.3256097	−0.2977128	−0.0278969	0.0153209
PHX	0.012201	0.0119955	0.0002055	0.002134
GHX	−0.0295815	−0.0317671	0.0021856	0.0010207
PE	−0.0098794	−0.0085136	−0.0013658	0.0008101
SE	−0.0285745	−0.0284167	−0.0001578	0.0009507
TE	−0.0205758	−0.0190646	−0.0015112	0.0009846
Statistic	ChiSq(7) = 38.61; Prob ChiSq. = 0.0000
b = consistent under Ho and Ha; B = inconsistent under Ha, efficient under Ho; obtained from xtreg

Source: Author’s estimation.

Table 5. Results of YE_EM model

	(1)	(2)
VARIABLES	YE-E M (LR)	YE-EM (SR)
Ecm		−0.317***
		(0.0469)
D.lnGDPpc		0.0528***
		(0.00426)
D.PE		0.0184***
		(0.00182)
D.SE		0.0288
		(0.0342)
D.PHX		−0.00192
		(0.0157)
D.GHX		−0.0276**
		(0.0131)
D.SPR		0.115
		(0.126)
D.TE		0.000449**
		(0.000174)
lnGDPpc	0.0738***
	(0.00981)
PE	0.0145***
	(0.00300)
SE	0.0749
	(0.0812)
PHX	0.0228
	(0.0468)
GHX	0.0559***
	(0.0030)
SPR	0.534***
	(0.0332)
TE	0.00816***
	(0.00161)
Constant		16.34***
		(2.433)
No. of Obs No, of groups	840 40

Standard errors in parentheses

*** p <0.01, ** p <0.05, * p <0.1.