Indian Educational Expenditure, Educational Achievement And Joblessness: An Empirical Study

Abstract

Examining the relationship between public spending on education, secondary school education attainment, and the rate of unemployment in India from 1987 to 2017 is the main goal of this article. The long-term association between the variables is discovered using the autoregressive distributed lags (ARDL) bound testing approach. A block exogeneity test based on a vector error correction model is used to look for causal connections. The empirical results reveal that education levels proxied by enrollment rates ratio at secondary level of schooling negatively affects rate of unemployment in long run and in short run. In contrast, public spending on education is ineffectual in influencing both academic achievement and the unemployment rate. This is the first empirical investigation on the link between public education expenditures, educational achievement, and unemployment in India.