The Effect of Education on Youth Employment in Kenya

Abstract

The global youth unemployment rate is estimated at 12.6 per cent, with about 73 million young people being unemployed (ILO, 2013). In Kenya, it is established that youth unemployment rate has always been higher than total unemployment rate. In 1998/99 youth unemployment rate was 19.4% while total unemployment rate was only 14.6%. In 2005/06, youth unemployment rate was 20.2% higher than total unemployment rate of 12.7%. Existing Literature depicts that education is an important factor in curbing youth unemployment (Becker, 1964). This study’s main objective is to determine the effect of educational attainment on youth employment in various types of employment such as wage employment, self employment agriculture and in self employment business. The study uses the multinomial logit model and data from Kenya Integrated Household Budget Survey (KIHBS) of 2005/ 2006 to analyze findings. Findings state that education is an important determinant in employment status of the youth. Youths with no education find it difficult to get employment as compared to those with primary, secondary and tertiary education. The study suggests that the government should develop programs like internships in government ministries; the Kazi Kwa Vijana initiative, Uwezo fund, and the Youth Enterprise Development Fund, to enable the youths get some income to sustain their lives.