The effects of schooling on rural unemployment in Ethiopia

Figures & data

Table 1. Percentage of unemployment and employment in rural Ethiopia (%)

	Male	Female	Total
Unemployment	19.80	41.90	61.70
Employment	21.20	17.10	38.30

Source: Authors’ computation based on 2021 CSA data, 2023.

Table 2. Unemployment by age in rural Ethiopia

Variable	Description	Frequency (N)	Percentage (%)
Age	Less than 18	2828	32.50
	18–28	4628	53.20
	29–39	826	9.50
	39–49	348	4.00
	Greater than 49	70	0.80
	Total	8700	100.00

Source: Authors’ computation based on 2021 CSA data, 2023.

Table 3. Literacy rate of unemployment

Variable	Option	Frequency (N)	Percentage (%)
Have you attended education?	Yes	5316	61.1
	No	3384	38.9
	Total	8700	100

Source: Authors’ computation based on 2021 CSA data, 2023.

Table 4. Reason for unemployment in rural Ethiopia (%)

	Distributions
Reasons	Frequency (N)	Percentage (%)
No work related to my profession	426	4.90
Lack of job opportunities	4654	53.49
Lack of training	1044	12.00
Lack of experience	757	8.70
Lack of vacancy advertisement	348	4.00
Introduction of the modern system of work	17	0.20
In search of a better job opportunity	129	1.49
Not to work at a distant place	235	2.70
To alter the usual place of work	17	0.20
Low payment/salary	43	0.49
Slack period	348	4.00
Off-season	191	2.20
The inconvenience of working time	104	1.20
Unable to speak the local language	52	0.60
COVID19	96	1.10
Others	244	2.80
Total	8700	100.00

Source: Authors’ computation based on 2021 CSA data, 2023.

Table 5. Probit model, in marginal effect, estimation of schooling and other selected variable effect on rural unemployment in Ethiopia

Variables	Coef.	Std. Err.	Z	P>Z	dy/dx
Sex	−1.175	.109	−10.72	0.000	−0.468
Age	0.123	0.023	5.17	0.000	0.049
Age Square	−0.001	0.000	−4.94	0.000	−0.000
Can_read_and_write	−0.654	0.382	−1.71	0.087	−0.261
Attend_formal_or_informal_education	0.380	0.142	2.68	0.007	0.151
Highets_grade_completed	−0.003	0.004	−0.73	0.464	−0.001
Certificate_received_from_TVET	−0.188	0.128	−1.47	0.142	−0.075
Marital_status	0.216	0.060	3.58	0	0.086
Educational_skill	0.0781	0.093	0.84	0.403	0.031
_cons	1.464	0.582	2.51	0.012
Probit regression		Number of obs.= 8700
		LR chi^2(9) = 204.66
		Prob > chi^2 = 0.0000
Log likelihood = −500.70672		Pseudo R^2 = 0.1697

Source: Authors’ computation based on 2021 CSA data, 2023.

Table

	Unstandardized Coefficients		Standardized Coefficients			Collinearity Statistics
	B	Std. Error	Beta	T	Sig.	Tolerance	VIF
(Constant)	0.921	0.190		4.838	0.000
Sex	0.410	0.036	0.385	11.435	0.000	0.827	1.209
Relationship to the head of the household	0.016	0.009	0.060	1.886	0.060	0.930	1.075
Age	−0.002	0.002	−0.044	−1.22	0.223	0.706	1.416
Can You Read and Write?	0.215	0.118	0.056	1.819	0.069	0.987	1.013
attended formal education	−0.121	0.047	−0.083	−2.595	0.010	0.925	1.081
What was the highest grade you have completed?	0.001	0.001	0.025	0.707	0.48	0.772	1.295
received a certificate from TVET	0.066	0.043	0.053	1.537	0.125	0.774	1.291
Marital Status	−0.072	0.020	−0.115	−3.519	0.000	0.879	1.138
education skill	−0.024	0.031	−0.025	−0.781	0.435	0.903	1.108

Source: Authors Computation based on 2021 CSA data, 2023.

Annex 2. The pattern of unemployment in rural Ethiopia by region

Source: Authors Computation based on 2021 CSA data, 2023

Annex 3: Types and areas of employment in rural Ethiopia (%)

Source: Authors’ computation based on CSA, 2021 data, 2023