Determinants of Graduate Unemployment Duration and Its Impact: Evidence from Jimma Town, South West Ethiopia

Abstract

This study was strange for the analysis of determinants of individual unemployment duration of graduates and its impact using cross-sectional primary data. The study population was 2012-2016 G.C. graduates of private and government higher institution of Ethiopia found in Jimma town, it includes employed as well as unemployed. The Data collected using selfadministered questionnaire. Simple random sampling technique was used. Kaplan-Meier estimation method, Cox proportional hazard regression, and parametric regression models were applied. Both parametric and non-parametric Estimation result suggests that a cumulative grade points aggregate, an expected unemployment duration, the gap between unearned income during unemployment and actual salary after employment, language, financial difficulties faced by unemployment, family background; mother and father education level, father employment sector, educational practicum and having developed skill are the most highly significant factors affecting graduate unemployment duration. The hazard rate shows an increasing trend within study time interval taken. Quality education, skill enhancing education, educated or human capital intensive development policies and economic activities which generate temporary income during unemployment are the recommended issues in reducing unemployment hazard.