Determinants of unemployment in Algeria: Econometric Study using the ECM Model

Abstract

Abstract: This paper aims to identify the most important explanatory variables of unemployment in Algeria, through a study based on a error correction models.

 When applied, the Dickey-Fuller test showed that all variables are stationary at the level of first difference. The Johansen test showed that all variables are co-integrated and that there is a single long-term relationship between the variables.

       After the estimation process, we found that there is an inverse relationship between unemployment rate and the most important explanatory variables