A record study to the problem of unemployment in Algeria during the period 1985/2014 using the self-gradient rays VAR.

Abstract

The study aims at describing, analyzing and measuring the impact of some variables on the unemployment rate in Algeria using Vector Auto Regression model VAR during 1985-2014. The study found different determinants of unemployment than those mentioned in the economic theories and previous studies. Moreover, the study concluded that there is a causal relationship in one direction between the unemployment rate and the size of the population and different statistically significant relationships, positive and negative, between the unemployment rate and other variables. The analysis of variance shows the weak and very weak impact of both the inflation rate and the size of population, respectively, on the unemployment rate, and strong impact of GDP and public expenditure on the unemployment rate.