The impact of education on unemployment incidence: micro evidence from Vietnam

Abstract

Unemployment is one of the major challenges which lead to the unsustainability in our economy and society. To deal with high unemployment, education is considered as one of the best solutions because it reduces the unemployment probability by preparing knowledge and skills for people before they participate in the labor market. This thesis aims to analyze the link between education and unemployment by examining the impact of educational attainment on unemployment probability when considering other control variables at the micro level such as gender, age, marital status, health status, regional level and family economic condition, using the secondary data from Vietnam Household Living Standards Survey 2008 (VHLSS2008). The analysis is conducted by running logit model. The findings confirm that ducational attainment has a significantly negative effect on unemployment risk. The thesis also points out that women are more likely to enter unemployment spell than men at the same educational level. In ddition, age, ethnic, health status, marriage, being household head, geographic location, household expenditure and number of young children also play a statistically important role on unemployment. From the results, the study gives some policy recommendation.