Effect of ICTs on Youth Unemployment in Sub Saharan Africa: A Panel Data Analysis
Ebaidalla Mahjoub Ebaidalla
This study investigates the impact of Information and Communication Technologies (ICTs) on youth unemployment in the Sub-Saharan African (SSA) during the period 1995-2010. The study employs a dynamic panel data method for a sample of 30 SSA countries, measuring the ICT facilities by mobile cellular subscriptions and the number of internet users. The empirical results show that mobile subscriptions have a negative and significant effect on youth unemployment in SSA countries, implying that communications boom in the last decades has promoted the youth employment. The impact of internet is found to be negative but it is not significant, confirming the weakness of internet infrastructure in SSA. To improve the employability of young workers in SSA, the paper recommended that the ICT facilities should be utilized effectively to provide job opportunities for young people. In addition, private and foreign direct investment in ICTs should be expanded taking into account the needs of labour markets. Moreover, serious efforts need to be paid to ICT skills development aiming at enhancing the experiences of young people in order to facilitate their entering into the labour market.