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Productivity And Unemployment In Nigeria

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  • Obadan, Mike
  • Odusola, Ayodele

Abstract

The need to avert the negative effects of unemployment has made the tackling of unemployment problems to feature very prominently in the development objectives of many developing countries. Incidentally, most of these countries' economies are also characterized by low productivity. Thus, it seems obvious to many policy makers that there must be a straight forward connection between productivity and employment/unemployment. However, the theoretical linkage between productivity and unemployment is yet to be settled in the literature. While some researchers posit that higher productivity may increase unemployment (e.g. Diachavbre, 1991; Krugman, 1994), some others argue that it could increase employment (e.g Yesufu, 1984; Akerele, 1994; CEC, 1993). In view of the unfolding reality coupled with the protracted debates this paper attempts to examine the linkage between productivity and unemployment. Specifically, it examines the dimensions of productivity and unemployment in Nigeria as well as the direction of causality between them. To this end, the rest of the paper is organized thus. Following this introduction is part II, which examines the conceptual and theoretical is sues. Part III discusses the profile of productivity and unemployment in Nigeria while the empirical link between them is examined in part IV. The final part contains the policy implications and conclusions.

Suggested Citation

  • Obadan, Mike & Odusola, Ayodele, 2000. "Productivity And Unemployment In Nigeria," UNDP Africa Economists Working Papers 307335, United Nations Development Programme (UNDP).
    • Handle: RePEc:ags:undpae:307335
    DOI: 10.22004/ag.econ.307335
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    References listed on IDEAS

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    1. Paul R. Krugman, 1994. "Past and prospective causes of high unemployment," Economic Review, Federal Reserve Bank of Kansas City, vol. 79(Q IV), pages 23-43.
    2. Rama, Martin, 1998. "How Bad Is Unemployment in Tunisia? Assessing Labor Market Efficiency in a Developing Country," The World Bank Research Observer, World Bank, vol. 13(1), pages 59-77, February.
    3. van Schaik, A.B.T.M. & de Groot, H.L.F., 1997. "Productivity and Unemployment in a Two-country Model with Endogenous Growth," Discussion Paper 1997-53, Tilburg University, Center for Economic Research.
    4. Roberts, Mark J & Tybout, James R, 1997. "Producer Turnover and Productivity Growth in Developing Countries," The World Bank Research Observer, World Bank, vol. 12(1), pages 1-18, February.
    5. Tybout, James R, 1992. "Linking Trade and Productivity: New Research Directions," The World Bank Economic Review, World Bank, vol. 6(2), pages 189-211, May.
    6. Gordon, Donald F., 1976. "A neo-classical theory of keynesian unemployment," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 1(1), pages 65-97, January.
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    Cited by:

    1. Adejumo, Oluwabunmi O. & Asongu, Simplice A. & Adejumo, Akintoye V., 2021. "Education enrolment rate vs employment rate: Implications for sustainable human capital development in Nigeria," International Journal of Educational Development, Elsevier, vol. 83(C).
    2. Nurudeen Abu, 2017. "Does Okun’s Law Exist in Nigeria? Evidence from the ARDL Bounds Testing Approach," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 11(2), June.
    3. Sharimakin A. & Oseni M.S. & Adegboye A.C., 2015. "Education, labour productivity and income inequality in Nigeria," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 15(1), pages 295-306.

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