Research Paper | Economics | Kenya | Volume 6 Issue 6, June 2017
Effect of Inflation on Unemployment in Kenya
Moses K Macharia, Aggrey Otieno
Unemployment arises when people are physically capable and willing to work at any existing rate of wages, but they cannot find jobs. Different theories and studies differ on the crucial determinants of unemployment in an economy. In Kenya, policies and strategies have been put in place by the government to reduce unemployment. However, this problem remains a threat to the economic growth. This study, therefore, aimed to analyze the effects of inflation on the unemployment. The causal research design was used to establish the effects of this macroeconomic variable on the unemployment rate. A Cointegration methodology was used to establish the cause-effect relationship between the variables while the hypothesis was tested at 5 % level of significance. The study revealed that inflation rate with p-value < than 0.05 had an inverse relationship with an unemployment rate in the long run as well as in short run. The study recommended that the government should come up with policies that help in ensuring a minimum possible rate of inflation in the country to achieve lowest possible levels of unemployment. The study would form the basis for further study to establish the optimal rates of the inflation and unemployment in Kenya.
Keywords: Cointegration, Inflation, Philips Curve, Unemployment
Edition: Volume 6 Issue 6, June 2017
Pages: 1980 - 1984
How to Cite this Article?
Moses K Macharia, Aggrey Otieno, "Effect of Inflation on Unemployment in Kenya", International Journal of Science and Research (IJSR), https://www.ijsr.net/search_index_results_paperid.php?id=ART20174660, Volume 6 Issue 6, June 2017, 1980 - 1984
138 PDF Views | 112 PDF Downloads
Similar Articles with Keyword 'Cointegration'
Research Paper, Economics, China, Volume 6 Issue 8, August 2017
Pages: 1291 - 1295The Influence of Supply-Side Factors on the Upgrading of Chinas Industrial Structure
Juan Shang, Yao Tong
Research Paper, Economics, Turkey, Volume 5 Issue 4, April 2016
Pages: 1888 - 1898Long and Short Term Relationship between Real Exchange Rate, Travel Revenues and Expenditure in Turkey during the Period of 2003:1-2016:1
Nazm CATALBAS
Research Paper, Economics, Nigeria, Volume 3 Issue 11, November 2014
Pages: 2571 - 2577Investigation of the Impact of Non-Oil Revenue on Economic Growth in Nigeria
Ude Damian Kalu, Agodi Joy E.
Research Paper, Economics, Kenya, Volume 3 Issue 10, October 2014
Pages: 1666 - 1671Impact of Selected Macroeconomic Indicators on Inflation in Kenya
Maureen Gathuu, George Kosimbei
Research Paper, Economics, Pakistan, Volume 5 Issue 3, March 2016
Pages: 1856 - 1859Impact of Foreign Direct Investment on Sectors of GDP Pakistan Perspective
Muhammad Ajmair, Ashiq Hussain
Similar Articles with Keyword 'Inflation'
Research Paper, Economics, India, Volume 7 Issue 4, April 2018
Pages: 1024 - 1029Analyze the Factor Responsible for Change in Price Index to Measure Inflation in India
Ayush Deo, Dr Rosy Kalra
Research Paper, Economics, China, Volume 5 Issue 10, October 2016
Pages: 1582 - 1587Analysis of Interest Rate and Stock Price in Africa: Case Study of Ghanaian Listed Firms
Bridget Opoku-Agyemang, Grace Ofori-Abebrese, Benjamin Korankye
Research Paper, Economics, Indonesia, Volume 5 Issue 8, August 2016
Pages: 1090 - 1096Analysis the Influence of Internal Factor and External Factor on Yield Bonds Government in 2011-2014
Utami Yuliani, Bambang Juanda, Trias Andati
Informative Article, Economics, India, Volume 9 Issue 8, August 2020
Pages: 925 - 927Impact of Oil Prices on Economic Growth of India
Ankit Chaudhary
Research Paper, Economics, Iraq, Volume 4 Issue 5, May 2015
Pages: 1354 - 1358Synchronization of Inflation and Unemployment and Poverty Increase in the Iraqi Economy for (1994-2010)
Hind Ghanim Mohammed Al-Mohanna, Dr. Hanan Abdul-Khidher, Fatin Aeyed Jassim
Similar Articles with Keyword 'Unemployment'
Research Paper, Economics, India, Volume 7 Issue 7, July 2018
Pages: 1184 - 1188A Comprehensive Study of Macroeconomic Forecasting Models based on Neural Network
Aashi Agarwal, Shalini Gupta
Research Paper, Economics, Iraq, Volume 4 Issue 5, May 2015
Pages: 1354 - 1358Synchronization of Inflation and Unemployment and Poverty Increase in the Iraqi Economy for (1994-2010)
Hind Ghanim Mohammed Al-Mohanna, Dr. Hanan Abdul-Khidher, Fatin Aeyed Jassim
Review Papers, Economics, Ethiopia, Volume 3 Issue 8, August 2014
Pages: 1578 - 1585Root Causes and Solutions to Human Trafficking in Ethiopia
Gabriel Temesgen
Informative Article, Economics, India, Volume 7 Issue 11, November 2018
Pages: 1296 - 1300Problem of Population Increase in India
Sudarsana Sarkar
Research Paper, Economics, India, Volume 3 Issue 6, June 2014
Pages: 2557 - 2559Mahathma Gandhi National Rural Employment Gurantee Scheme - A Right to Act
Prathibha R. S.