The Effect of Urbanization on Unemployment: Case Study of Some Arab Countries for the Period 1996-2021
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Abstract
The main demographic feature since the second half of the twentieth century has been the remarkable growth of urbanization, not only at the local level but also at the global level. This phenomenon has cast a dark shadow on the economic, social and psychological scene in all countries around the world, particularly in Arab countries, including its impact on unemployment. The Arab countries have witnessed a widespread growth in unemployment, particularly concentrated in urban areas. This research comes to discuss the mechanisms linking urbanization in Arab countries on one side and unemployment on the other. The research adopted the ARDL model, using panel data, for the period 1996-2021, for thirteen Arab countries: (Algeria, Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Qatar, Saudi Arabia, and Sudan). A model was built to measure the impact of urban population growth on the unemployment rate, taking into account the impact of another tow explanatory variables, namely, population growth, and the percentage of capital accumulation in GDP. Long-term results showed that there is an undesirable effect of urban population growth on the unemployment rate. The effect of urbanization on male unemployment was greater compared to female unemployment. This requires policies aimed at reducing unemployment take into account the unemployment effects left by urbanization.
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