The Annals o he Uni e si y o O adea. Economic Sciences, Tom XXVI 2017, Issue 1  171
DISCUSS THE RELATIONSHIP BETWEEN UNEMPLOYMENT AND LEVEL OF
EDUCATION IN PALESTINE
Ahmed Salama
Ká oly Ih ig Doc o al School o Managemen and Business, Facul y o Economics
and Business, Uni e si y o Deb ecen, Deb ecen, Hunga y
[email protected]
Abs ac : This pape discusses he ela ionship be ween unemploymen and le el
o educa ion in Pales ine be ween 2005 and 2015. The aim o his pape is o
unde s and he ela ionship be ween unemploymen and educa ion le el in
Pales ine. Educa ion ou pu s in Pales ine day by day inc ease in all le els, howe e ,
Pales ine acing an inc ease in unemploymen o e ime, which became one o he
challengeable cases in he coun y. The ques ion is, wha is he ela ionship be ween
unemploymen and educa ion le el?. To answe his ques ion, we examined ou
educa ion le els (1 o 6 yea s o schooling, 7 o 9 yea s o schooling, 10 o 12 yea s
o schooling and 13 and mo e yea s o schooling) ega ding unemploymen a e
be ween 2005 and 2015 acco ding o he Pales inian Cen al Bu eau o S a is ics
(PCBS, 2006-2016) labou o ce su eys and annual epo s om 2005 o 2015. The
esul s indica e ha , he e is a nega i e ela ionship be ween unemploymen a e
and educa ion le els (1 o 6 yea s o schooling, 7 o 9 yea s o schooling, 10 o 12
yea s o schooling and 13 and mo e yea s o schooling om 2005 o 2010, while his
ela ionship has changed since 2010. Since 2011, indi iduals who ha e (13 and
mo e yea s o schooling) become he highes unemploymen among he o he le els.
The esul s also showed ha he e is gende di e ence o unemploymen a e among
all ou educa ion le els (1 o 6 yea s o schooling, 7 o 9 yea s o schooling, 10 o
12 yea s o schooling, and 13 and mo e yea s o schooling).The di e ence be ween
he wo gende s o he unemploymen a e was 17.4 % di e ence in case o (1 o 6
yea s o schooling), 29.4% di e ence o (13 and mo e yea s o schooling), 7.1%
di e ence in (7 o 9 yea s o schooling) and 1.9% di e ence among (10 o 12 yea s
o schooling) in 2015. The e is a di e ence be ween Wes Bank and Gaza S ip
ega ding unemploymen a e among all ou le els o educa ion. These indings can
help o iden i y he oo s o unemploymen in connec ion wi h educa ion ou pu s.
Keywo ds: unemploymen ; Pales ine; educa ion; schooling; Wes Bank; Gaza S ip.
JEL classi ica ion: E24; F66.
1. In oduc ion
Unemploymen is one o he se ious challenges in some coun ies a ound he wo ld.
People in es in educa ion o ge be e oppo uni ies in hei u u e li e. The bigges
challenge when an educa ed pe son becomes unemployed. Pales ine as a
de eloping coun y acing he challenge o unemploymen among i s ci izens, while
he educa ion le el in Pales ine has a good le el and among people(15 yea s and
mo e) wi h 96.7 % li e acy a e in 2015 ( Li e acy Ra e,(PCBS), 2015). Nowadays
Pales ine popula ion a ound 4.8 million, 2.9 million in Wes Bank and a ound 1.9
million in Gaza s ip (Pales inian Cen al Bu eau o S a is ics, (PCBS), 2016a). In he
4 h qua e 2016, he pa icipa ion a e in labou o ce in Pales ine among pe sons
The Annals o he Uni e si y o O adea. Economic Sciences, Tom XXVI 2017, Issue 1  172
15 yea s and mo e is 45.5% (Labou Fo ce Su ey, PCBS, 2017). Acco ding o
Labou Fo ce Su ey, PCBS (2017) unemploymen a e in he
4 h qua e 2016 in
Pales ine is 25.7%, 202,900 unemployed who co e ed by Gaza S ip and mo e han
hal o his numbe in Wes Bank (143,100 unemployed). The a e o unemploymen
in Gaza S ip is 40.6%, while i s only 16.9% in Wes Bank and among unemployed
pe sons, 21.0 % a e males and 43.9% a e co e ed by emales (Labou Fo ce
Su ey, PCBS, 2017). Mo e unemploymen exis s among you h especially be ween
20-24 yea s by 41.6 % (Labou Fo ce Su ey, PCBS, 2017). The educa ion inpu s
(s uden s) and ou pu s (g adua es) also inc easing, whe e in he academic yea
2000/2001 he numbe o s uden s who a ending Uni e si ies, Uni e si y Colleges
and Communi y Colleges was 80,543 s uden s, while 15 yea s la e , he s uden s
numbe has been inc eased a ound h ee imes mo e o each 221,395 s uden s in
he academic yea 2014/2015. The numbe o g adua es in he academic yea
2000/2001 was 13,151 g adua es and a e 15 yea s his numbe inc eased mo e
han h ee imes and became 43,544 g adua es in he academic yea 2014/2015
(Pales inian Cen al Bu eau o S a is ics, (PCBS), 2016b). Bo h s uden s and
g adua es numbe s a e inc easing con inuously, which pu mo e p essu e on he
go e nmen o Pales ine o u u e employmen . Le el o educa ion in Pales ine
ge ing inc eased, bu un o una ely, he unemploymen a e among people ge ing
inc ease as well, especially in g adua es (uni e si y deg ee holde s) who need o
wai o mon hs o ge jobs, bu he wai ing also no gua an ee o ge job a he end
in pa icula , i he skills o g adua es pe sons do no ma ch wi h labou ma ke needs.
The ques ion is “wha is he ela ionship be ween unemploymen and le el o
educa ion?”The answe can be ound by es ing unemploymen among educa ion
sys em in Pales ine, which consis s o 12 yea s in schools be o e you head up o
uni e si y, 6 yea s elemen a y schools, 3 yea s middle schools and 3 yea s
seconda y schools. In his pape , we will discuss he ela ionship be ween
unemploymen and le el o educa ion in Pales ine and y o unde s and he
ela ionship be ween unemploymen and educa ion.
2. Li e a u e Re iew
Many s udies ha e been conduc ed o unde s and he ela ionship be ween he le el
o educa ion and unemploymen and he e ec o educa ion on unemploymen . In
his s udy, Bai agya (2015) s a ed ha , as he le el o educa ion inc ease, he
unemploymen p obabili y dec ease, bu his can be in de eloped coun ies, while in
de eloping coun ies, as he le el o educa ion g ows up, he unemploymen g ows
up as well (Bai agya, 2015). A olabi (2013) indica ed ha he mo e g ow h o
educa ion compa ed o economy g ow h is one o he p ima y causes o
unemploymen due o he job supply canno ul ill g adua es demand. Biagi and
Luci o a (2008) ound ha he e is a nega i e ela ionship be ween he
unemploymen a e and people who ha e mo e han obliga o y educa ion. Diawa a
and Mughal (2011) indica ed ha he likelihood o be sel -employed is less han he
likelihood o be employed in public sec o o bo h seconda y and uni e si y
educa ion holde s. In his s udy abou Romania, Diaconu (2014) ound ha he
likelihood o employmen inc eases wi h he inc ease o educa ion le el. The indings
o Ionescu (2012) highligh ha , he p obabili y o employmen inc eases wi h he
inc ease o educa ion le el. Mo eo e , he inc ease o educa ion le el sus ain
indi idual job du ing labou ma ke c isis ( Ionescu ,2012). In his s udy abou
The Annals o he Uni e si y o O adea. Economic Sciences, Tom XXVI 2017, Issue 1  173
Ne he lands Wolbe s (2000) poin ed ou ha mo e unemploymen among people
wi h low educa ion le el han highe educa ion le el. In addi ion o ha , he men ioned
ha oca ional g adua e’s people ha e less unemploymen dange han people who
g adua es om uni e si y (Wolbe s, 2000).
Mos o he s udies ha we men ioned claimed ha as he le el o educa ion
inc ease, he unemploymen dec ease and acco ding o ha , we o med ou
hypo heses as:
H1: As le el o educa ion inc ease, unemploymen a e dec ease be ween
2005 and 2015.
H2: As le el o educa ion inc ease, unemploymen a e inc ease be ween
2005 and 2015.
3. Me hod
Acco ding o he Pales inian Cen al Bu eau o S a is ics (PCBS, 2006-2016) labou
o ce su eys and annual epo s om 2005 o 2015, ele en yea s will be analyzed
ega ding unemploymen a e and yea s o schooling (le el o educa ion) in Pales ine
om 2005 o 2015 o examine he ela ionship be ween he unemploymen a e and
le el o educa ion du ing his pe iod. The di ision o educa ion le el (yea s o
schooling) o indi iduals will be as i been used by (PCBS) labou o ce su eys and
annual epo s om 2005 o 2015, which a e 1 o 6 yea s o schooling, 7 o 9 yea s
o schooling, 10 o 12 yea s o schooling, and 13 and mo e yea s o schooling. A e
looking a he ela ions be ween he unemploymen a e and educa ion le el (yea s
o schooling), he gende di e ence will be es ed and a he end, a compa ison will
be made be ween he Wes Bank and Gaza s ip ega ding unemploymen a e and
yea s o schooling (le el o educa ion) ela ionship.
4. Resul s
4.1. The Rela ionship be ween Unemploymen and Yea s o Schooling
The e is a di e ence o he unemploymen a e among all educa ion le els (Figu e
1). The unemploymen a e o pe sons who ha e 13 and mo e yea s o schooling
inc easing and eached i maximum pe cen age in 2014 wi h 31.6%, while in 2005
his pe cen age was only 21.8%. Du ing 11 yea s, he unemploymen has been
inc eased by 8.1%. In con as , he unemploymen a e o pe sons who ha e
be ween 1 and 6 yea s o schooling no changing much wi h ime and eached i
minimum pe cen age in 2011 wi h 19.7 %, while he pe cen age was 26.2% in 2005,
and unemploymen dec eased by 1.2 % be ween 2005 and 2015.
The Annals o he Uni e si y o O adea. Economic Sciences, Tom XXVI 2017, Issue 1  174
Figu e 1: Unemploymen a e (%) by yea s o schooling in Pales ine.
Sou ce: au ho de elopmen based on Da a om (Pales inian Cen al Bu eau o
S a is ics, (PCBS). Labou Fo ce Su eys: Annual Repo s: 2005-2015).
The maximum pe cen age o he unemploymen a e o pe sons who ha e 7 o 9
yea s o schooling was 27.3 % in 2008 and he minimum pe cen age was 20.5% in
2011. Pe sons who ha e 10 o 12 yea s o schooling aced almos no change i we
compa e 2005 and 2015, which began wi h 23.5% in 2005 and ended up wi h 23.4%
in 2015 and he maximum pe cen age, was in 2008 wi h 26% and he minimum was
in 2011 wi h 19.2%.
4.2. Gende Di e ence Among all Fou Le els o Educa ion (1 o 6 Yea s o
Schooling, 7 o 9 Yea s o Schooling, 10 o 12 Yea s o Schooling, and 13 and
Mo e Yea s o Schooling).
Figu e 2 shows ha he gende di e ence o unemploymen a e among all ou
le els o educa ion (1 o 6 yea s o schooling, 7 o 9 yea s o schooling, 10 o 12
yea s o schooling, and 13 and mo e yea s o schooling). The e is a big gap be ween
unemploymen o males and emales o (1 o 6 yea s o schooling) be ween 2005
and 2015. The maximum unemploymen a e in males was in 2008 wi h 33% and i
s a s wi h 28.8% in 2005 and dec eased o 27.1% in 2015, which mean 1.7%
dec ease in unemploymen a e. On o he side, emales s a ed wi h 7.8% o he
unemploymen a e in 2005 and eached i s maximum in 2015 wi h 9.7% and i s
minimum in 2013 wi h 2.8%. This indica es 1.9 % inc ease in he unemploymen a e
be ween 2005 and 2015. The di e ence be ween he wo gende s o unemploymen
a e s a ed wi h 21% di e ence in 2005 and closed in 17.4% di e ence in
2015(Figu e 3). The e is a big gap as well be ween unemploymen o males and
emales o (13 and mo e yea s o schooling). Females eached i maximum
0
5
10
15
20
25
30
35
Unemploymen (%)
Yea s o Schooling (1 o 6)
Yea s o Schooling (7 o 9)
Yea s o Schooling (10
o12)
Yea s o Schooling (13+)
The Annals o he Uni e si y o O adea. Economic Sciences, Tom XXVI 2017, Issue 1  175
unemploymen a e wi h 50.6 % in 2014 and ended wi h 48% in 2015, while in 2005
he a e was 32.5%, which mean 15.5 % inc ease in unemploymen be ween 2005
and 2015. In con as , males s a ed wi h 16.6% o he unemploymen a e in 2005
and eached he maximum in 2014 wi h 19.1%. The di e ence be ween he wo
gende s o unemploymen was 15.9% in 2005 and ended by 29.4% di e ence in
2015(Figu e 3). Unemploymen o males and emales o (7 o 9 yea s o schooling)
has a gap as well. The unemploymen a e o males s a s wi h 26% in 2005 and
close a 24.1% in 2015, which mean 1.9% dec ease in unemploymen a e. The
maximum unemploymen a e o males was in 2008 wi h 29% and eached i s
minimum in 2011 wi h 21.5 %. On o he side, emales s a ed wi h 11.3% o he
unemploymen a e in 2005 and eached i s minimum in 2007 wi h 6.3% and ended
up wi h 17 % in 2015, which indica es 5.7 % inc ease in he unemploymen a e
be ween 2005 and 2015. The di e ence be ween he wo gende s o unemploymen
a e s a ed wi h 14.7% di e ence in 2005 and closed in 7.1 % di e ence in
2015(Figu e 3). A gap be ween unemploymen o males and emales can be ound
in (10 o 12 yea s o schooling). Males eached i maximum unemploymen a e wi h
27.4 % in 2008 and ended wi h 23.2% in 2015, while in 2005 he unemploymen a e
was 24.1%, which mean 0.9% dec ease in unemploymen be ween 2005 and 2015.
In con as , emales s a ed wi h 17.2% o he unemploymen a e in 2005 and ended
up wi h 25.1 % in 2015. The di e ence be ween he wo gende s o unemploymen
a e was 6.9% in 2005 and ended wi h 1.9% di e ence in 2015 (Figu e 3).
Figu e 2: Unemploymen a e (%) by yea s o schooling in Pales ine among Gende .
Sou ce: au ho de elopmen based on Da a om (Pales inian Cen al Bu eau o
S a is ics, (PCBS). Labou Fo ce Su eys: Annual Repo s: 2005-2015).
0
10
20
30
40
50
60
Unemploymen (%)
Females(Yea s o
Schooling(1 o 6))
Males(Yea s o
Schooling(1 o 6))
Females(Yea s o
Schooling (7 o 9))
Males(Yea s o Schooling
(7 o 9))
Females(Yea s o
Schooling (10 o12))
Males(Yea s o Schooling
(10 o12))
Females(Yea s o
Schooling (13+))
Males(Yea s o Schooling
(13+))

The Annals o he Uni e si y o O adea. Economic Sciences, Tom XXVI 2017, Issue 1  176
Figu e 3: Gende di e ence o Unemploymen a e (%) by yea s o schooling in
Pales ine.
Sou ce: au ho de elopmen based on Da a om (Pales inian Cen al Bu eau o
S a is ics, (PCBS). Labou Fo ce Su eys: Annual Repo s: 2005-2015).
4.3. Compa ison o Unemploymen Ra e (%) Among Educa ion Le els by
Loca ion (Wes Bank and Gaza S ip)
Figu e 4 shows ha , unemploymen a e and educa ion le el (yea s o schooling) in
Wes Bank be ween 2011 and 2015. Indi iduals who ha e (1 o 6) yea s o schooling
ha e he minimum unemploymen a e du ing his pe iod and he maximum
unemploymen a e among indi iduals who ha e (13+) yea s o schooling. Du ing
his pe iod, he unemploymen a e o Indi iduals who ha e (1 o 6) yea s o
schooling luc ua ing wi h ime, whe e i begins wi h 15% in 2011 and ended wi h
15.1% in 2015, while who ha e (7 o 9) yea s o schooling also luc ua ing as well
,whe e s a s wi h 17.6% in 2011 and decline o 15.5% in 2015. In con as , he
unemploymen a e o Indi iduals who ha e (10 o 12) yea s o schooling inc eases
om 2011 ill 2012 and in 2013 dec ease by 0.3% compa ing o 2012 and eached
15.8% in 2015. The unemploymen a e o Indi iduals who ha e (13+) yea s o
schooling inc eases be ween 2011 and 2014 and dec ease in 2015 by 2.1%
compa ing o 2014 (Figu e 4).
0
5
10
15
20
25
30
35
%
Yea s o Schooling (1 o
6)
Yea s o Schooling (7 o
9)
Yea s o Schooling (10
o12)
Yea s o Schooling (13+)
The Annals o he Uni e si y o O adea. Economic Sciences, Tom XXVI 2017, Issue 1  177
Figu e 4: Unemploymen a e (%) by yea s o schooling in Wes Bank.
Sou ce: au ho de elopmen based on Da a om (Pales inian Cen al Bu eau o
S a is ics, (PCBS). Labou Fo ce Su ey: Annual Repo s: 2011-2015).
Figu e 5: Unemploymen a e (%) by yea s o schooling in Gaza S ip.
Sou ce: au ho de elopmen based on Da a om (Pales inian Cen al Bu eau o
S a is ics, (PCBS). Labou Fo ce Su ey: Annual Repo s: 2011-2015).
15
16,5 15,1 14,4 15,1
17,6 18,9 17,9 14,9 15,5
16,1
17,8 17,5 15,7 15,8
19,7
21,6 21,7
23,2
21,1
2011 2012 2013 2014 2015
Yea s o Schooling (1 o 6) Yea s o Schooling (7 o 9)
Yea s o Schooling (10 o12) Yea s o Schooling (13+)
30 29 29,2
46,6
42,4
27,7 28,9 30,6
46 40,1
26,6 27,5 29,2
43,6
40,6
30,1
35,2 36,7 42,9 41,4
2011 2012 2013 2014 2015
Yea s o Schooling (1 o 6) Yea s o Schooling (7 o 9)
Yea s o Schooling (10 o12) Yea s o Schooling (13+)
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Figu e 5 shows ha , unemploymen a e and educa ion le el (yea s o schooling) in
Gaza S ip om 2011 o 2015. Du ing his pe iod, he unemploymen a e o pe sons
who ha e (1 o 6) yea s o schooling begins wi h 30% in 2011 and ended wi h 42.4%
in 2015, while who ha e (7 o 9) yea s o schooling s a s wi h 27.7 % in 2011 and
inc ease o 40.1 % in 2015. In con as , he unemploymen a e o pe sons who ha e
(10 o 12) yea s o schooling s a s wi h 26.6% in 2011 and close a 40.6% in 2015.
The unemploymen a e o pe sons who ha e (13+) yea s o schooling inc eases
be ween 2011 and 2014 and dec ease in 2015 by 1.5 % compa ing o 2014 (Figu e
5).
5. Discussion
Fou educa ion le els (1 o 6 yea s o schooling, 7 o 9 yea s o schooling, 10 o 12
yea s o schooling and 13 and mo e yea s o schooling) a e es ed ega ding
unemploymen a e. Acco ding o he esul s, he i s hypo hesis is accep ed and he
second hypo hesis is ejec ed om 2005 o 2010. In ano he wo d, as he pe son
become mo e educa ed, he become less unemployed. F om 2011 o 2015, he
esul s a e complica ed and high le el o schooling (13 and mo e yea s o schooling)
is inc easing and become highes o unemploymen a e among all le els o
educa ion bu why he unemploymen a e o low le els o schooling (1 o 6 yea s o
schooling and 7 o 9 yea s o schooling) is luc ua ing and why high le el o schooling
(13 and mo e yea s o schooling) is inc easing o e ime om 2011 o 2015?. In he
pe iod om 2005 o 2010 he people wi h (1 o 6 yea s o schooling and 7 o 9 yea s
o schooling) ha e mo e unemploymen han (13 and mo e yea s o schooling), bu
om 2011 o 2015, he unemploymen o (13 and mo e yea s o schooling) s a ed
o become mo e han he unemploymen o (1 o 6 yea s o schooling and 7 o 9
yea s o schooling). The easons maybe because in he i s pe iod 2005 o 2010,
he labou ma ke can s ill abso b people wi h (13 and mo e yea s o schooling), bu
can abso b mo e people wi h (1 o 6 yea s o schooling and 7 o 9 yea s o schooling)
and unemploymen among hese le els(1 o 6 yea s o schooling and 7 o 9 yea s o
schooling) is depended on he a ailabili y o jobs which no s able ha ’s why he
unemploymen among hese people is luc ua ing. In con as , he eason o he
inc easing o unemploymen among he high le el o educa ion (13 and mo e yea s
o schooling) is he apidly inc ease in g adua es. The numbe o g adua es in he
academic yea 2000/2001 was 13151 g adua es and a e 15 yea s his numbe
inc eased mo e han h ee imes and became 43544 g adua es in he academic yea
2014/2015 (Pales inian Cen al Bu eau o S a is ics, (PCBS)., 2016b). No only he
g adua es inc eased, bu also he ma ke became mo e compe i i e, bu also can be
ue ha schools do no supply he skills ha needed by employe s in he labou
ma ke . Gende di e ence appea ed among all he le els o educa ion( yea s o
schooling) (Figu e 3), which needs u he esea ch o disco e he easons o ha
bu , some easons may lead he wo gende s o be ou side he labou o ce, like
s udying o bo h gende s and housewo k o emales. The e is a conside able
di e ence be ween Wes Bank and Gaza S ip ega ding unemploymen a e among
all ou le els o educa ion (Figu e 4, Figu e 5), which can be because o he di e en
o labou ma ke si ua ion in Wes Bank and Gaza S ip.
The Annals o he Uni e si y o O adea. Economic Sciences, Tom XXVI 2017, Issue 1  179
6. Conclusion
In his pape , we discussed he ela ionship be ween unemploymen a e and le el
o educa ion in Pales ine. We examined ou o educa ion le els (1 o 6 yea s o
schooling, 7 o 9 yea s o schooling, 10 o 12 yea s o schooling and 13 and mo e
yea s o schooling) ega ding unemploymen a e. High unemploymen among he
low le els o educa ion(1 o 6 yea s o schooling, 7 o 9 yea s o schooling), while
low unemploymen a e among he high le els o educa ion(10 o 12 yea s o
schooling and 13 and mo e yea s o schooling) om 2005 o 2010. In addi ion o
ha , he e is gende di e ence ega ding unemploymen a e among all ou le els
o educa ion. The di e ence was 17.4 % di e ence in case o (1 o 6 yea s o
schooling), 29.4% di e ence o (13 and mo e yea s o schooling), 7.1% di e ence
in (7 o 9 yea s o schooling) and 1.9% di e ence among (10 o 12 yea s o schooling)
in 2015. The unemploymen a e inc eases among 13 and mo e yea s o schooling)
holde s, bu no neglec ha unemploymen a e in he i s wo le els (1 o 6 yea s
o schooling, 7 o 9 yea s o schooling) a e luc ua ing wi h ime (Figu e 1) and beside
all o ha , he e a e some easons ha may made some indi iduals ou side he
employmen , which should be conside ed in u u e esea ch o unde s and he
employmen and unemploymen in Pales ine plainly.
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