The impact of inflation on youth unemployment in Uganda

Abstract

This study aims at analyzing impact of inflation on youth unemployment in Uganda from 1995 to 2020. The dissertation also examines the short-run and long-run effect of inflation on youth unemployment in Uganda. Relevant literature in the research study by various scholars including relevant concepts was also cited as shown by Chapter two. Furthermore, the chapter documents in detail reviews of different researchers in regards to inflation and youth unemployment rates. To achieve the required objectives, correlation and regression analysis were used. Specifically, the ARDL model was used to examine both the short-run and long-run effects of inflation on youth unemployment in Uganda. In addition, descriptive analysis was used to analyze the characteristics of the variables in the research study. The study found an insignificant negative relationship between the inflation rate and youth unemployment rates implying a unit increase in inflation would lead to a decrease in the youth unemployment. Long-run relationship was found to be absent in the variables which is indicated by the absence of cointegration in the used model. In the short-run, population growth rate was not a significant predictor of the GDP. Short run relationship between the variables was found to be present with a coefficient of 0.0130307 which is a positive relationship between inflation and youth unemployment rates.