THE IMPACT OF UNEMPLOYMENT ON NIGERIAN ECONOMY

ABSTRACT.

The term unemployment can be defined as a situation whereby those who are willing and able to work do not find job. This is mostly seen among graduates of various institutions of learning especially in underdeveloped nation like Nigeria. The study was designed to investigate the impact on unemployment on Nigeria economy (1980-2010). The research focuses on determining the causes and effects of unemployment and how the problem of unemployment in Nigeria will be reduced to a minimal level or even eradicated. It focuses on this objective: to determine the relationship between unemployment and economic growth in Nigeria (GDP).The method of analysis used in testing the hypothesis is the t-test, f-test e.t.c.Data for the study was obtained from the Central Bank of Nigeria statistical bulletin. The major findings were that unemployment has a negative effect on the gross domestic product (GDP) of the Nigerian economy. Some suggestions and policy recommendations were made based on the findings.

TABLE OF CONTENT
Title page- - - - - - - - - -i
DEDICATION- - - - - - - - -ii
ACKNOWLEDGEMENT- - - - - - - -iii
ABSTRACT. - - - - - - - - -iv
TABLE OF CONTENT- - - - - - - -v

CHAPTER ONE
1.0 INTRODUCTION- - - - - - -1
1.1 BACKGROUND OF THE STUDY- - - - -1
1.2 STATEMENT OF THE PROBLEM- - - - -4
1.3 RESEARCH QUESTIONS.- - - - - -5
1.4 OBJECTIVE OF THE STUDY- - - - - -5
1.5 RESEARCH HYPOTHESIS- - - - - -5
1.6 SIGNIFICANCE OF THE STUDY- - - - -5
1.7 SCOPE AND LIMITATIONS OF THE STUDY- - -6

CHAPTER TWO
2.0 LITERATURE REVIEW- - - - - -7
2.1 THEORETICAL FRAMEWORK- - - - -7
2.2 THEORIES OF UNEMPLOYMENT- - - - -8
2.2.2 CLASSICAL THEORY OF UNEMPLOYMENT- -8
2.2.3 KEYNESIAN THEORY OF UNEMPLOYMENT- -9
2.2.4 EFFICIENCY WAGE THEORY- - - - -11
2.2.5 THE SEARCH THEORY- - - - - -12
2.2.6 THE INSIDER- OUTSIDER THEORY- - - -13
2.3 EMPERICAL LITERATURE- - - - - -13
2.4 LIMITATIONS OF THE PREVIOUS STUDIES - - -20

CHAPTER THREE
3.0 METHODOLOGY- - - - - - -21
3.1 THE MODEL- - - - - - - -21
3.2 MODEL SPECIFICATION.- - - - - -21
3.3 ESTIMATION TECHNIQUES AND RESULT
EVALUATION.- - - - - - - -23
3.3.2 THE ECONOMIC CRITERIA- - - - -23
3.3.3 THE STATISTICAL CRITERIA- - - - -24
3.3.4 ECONOMETRIC TESTS.- - - - - -25
3.4 NATURE AND SOURCE OF DATA- - - -26
3.5 ECONOMETRIC SOFTWARE PACKAGE- - -26

CHAPTER FOUR
4.0 PRESENTATION AND ANALYSIS OF RESULTS - -27
4.1 PRESENTATION OF RESULT- - - - -27
4.2 RESULT INTERPRETATION- - - - -28
4.2.1 ANALYSIS OF RESULT BASED ON ECONOMIC
CRITERIA- - - - - - - - -28
4.2.2: ANALYSIS BASED ON STATISTICAL CRITERIA - -29
4.2.3: THE F-STATISTICS TEST - - - - -31
4.3 ECONOMETRICS TEST ( 2ND ORDER TEST) - - -32

CHAPTER FIVE
5.0 SUMMARY OF FINDINGS, POLICY RECOMMENDATION
AND CONCLUSION- - - - - - -36
5.1 SUMMARY- - - - - - - -36
5.2 POLICY RECOMMENDATION- - - - -38
5.3 CONCLUSION- - - - - - - -39
BIBLIOGRAPHY- - - - - - - - -40