Effect of Inflation on Unemployment in Kenya
Abstract: 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
Keywords: Cointegration, Inflation, Philips Curve, Unemployment
How to Cite?: Moses K Macharia, Aggrey Otieno, "Effect of Inflation on Unemployment in Kenya", Volume 6 Issue 6, June 2017, International Journal of Science and Research (IJSR), Pages: 1980-1984, https://www.ijsr.net/getabstract.php?paperid=ART20174660, DOI: https://dx.doi.org/10.21275/ART20174660