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Educated unemployment can be described as a modern phenomenon by which a highly educated person is unable to find suitable as well as efficient job for him or her. This is a challenging aspect for both the developing and developed countries such as Australia, India etc. and number of contingencies has also been delivered. The aim of this study is to understand correlation between higher education and employment rate in India and Australia.
Test Hypothesis: Higher education subsidies will decrease the unemployment rate
Alternative Hypothesis: Higher education subsidies will increase the unemployment rate.
Both of the above-mentioned hypotheses can be tested by using formula of correlation test and last 10 years unemployment rate as well as education rate of India and Australia can be used to accept or reject these.
Theory and Literature Review of Impact of Growth in Education Level
Concept of Higher education
Higher education can be defined as different processes to learn a particular thing and currently this type of education system is based on technical advancement of an individual. As per the opinion of Cuervo & Wyn(2016), higher education is necessary for any country to increase knowledge and both the social cohesion and economic prosperity of a country can be ensured. This practice is helpful for developing countries such as India and developed countries such as Australia to identify skill gaps and adapted workforce development can also be possible. In Australia 99% people is highly educated and near about 75% people have higher education in India.
Concept of unemployment rate
Unemployment can be described as a problem for any society and unavailability of jobs are really harmful for youth generation. As per the view of Dhanaraj&Mahambare (2019), unemployment can be used as a relevant measure to detect economic condition of a country. In case of developing countries such as India, unemployment rate is about 5.36% in 2019 and for developed countries such as Australia, unemployment rate 5.27 for the year 2019.
Relationship between literacy rate and unemployment rate
Higher education subsidies and unemployment rate are significantly related to each other and the people between age group 15 and 44 are suffered mostly due to this. As pointed out by Malik &Jabeen (2020), positive relationship appears between higher education subsidies and unemployment rate. However, rate of unemployment is higher in case of females being equally educated as male and this traumatic factor affects both in case of developing and developed countries such as India and Australia consecutively. As a result, growth per capita is also ceased for these countries in a negative manner.
Cognitive development theory
Cognitive development theory can be termed as an education-based approach in which knowledge, skills and problem-solving capacity of an individual can be developed in a proper way. As commented by Norton, Norton &Cakitaki (2016), Australian higher education system has applied this practice for concreting human mind related to education and employability.
Factors of unemployment can be discussed properly with the help of demand-based theory and this approach provides the formula of equilibrium within work place for long time. As mentioned by Singh (2017), this macroeconomic theory is helpful to understand demands of highly educated people of India for employability and relationship between economic growth and employability can also be analyzed.
Comparison with other studies
This study about unemployment rate and higher education subsidies is quite different from previous research works because proper correlation test is performed in this study and numerical value is helpful to provide strategic backbone. On the other hand, last 10 years data about unemployment and higher education subsidies are retrieved from authentic websites for providing scientific backbone for the research.
Analysis of Impact of Growth in Education Level
Correlation test is efficient to describe how strongly two or more variables are related to each other and correlation co-efficient +1 suggests positive relations between variables. On the other hand, if the co-efficient value is -1, it defines perfect negative correlation between variables.
Tables are given below to compare the relationship between higher education subsidies and unemployment rate in Australia.
|Unemployment rate||Higher education rate|
|Higher education rate||#DIV/0!|
Table 1: Correlation
(Source: Macrotrends.net, 2020)
From the above tables it can be commented that unemployment rate has no effect in higher education of Australia and both the variables are not mutually related to each other. However, positive value provides information that if the variables will be related, they must have directly proportional to each other.
Tables are given below to compare the relationship between higher education subsidies and unemployment rate in India.
|Unemployment rate||Higher education rate|
|Higher education rate||-0.603619393|
Table 2: Correlation results
(Source: Macrotrends.net, 2020)
From the above tables, it is clear that unemployment rate and higher education subsidies are negatively related in case of India as the calculated value is -0.603619393. Therefore, it is necessary for India to provide proper job opportunity for needy people for economic development of nation and alternative hypothesis is proved from the result.
Economic development can be considered as another variable for this study and it can be aligned with both the test hypothesis and alternative hypothesis. According to the view of Taylor et al. (2018), financial stability is demanding for any country and employability is the only source to accomplish this fact. Therefore, this is an efficient variable to be considered for further research in near future.
It can be interpreted from this study that higher education subsidies and unemployment are strongly correlated to each other in India and most of the educated people suffered from mental stress because of this. As this country is a developing one, it is necessary to provide better job opportunity for all highly educated people. This becomes helpful to develop financial backbone of this country in a positive manner and global stability can also be achieved. On the contrary, higher education subsidy rate is constant in Australia and this does not ensure any positive or negative effect o employability rate.
The study has some basic constraints such as improper analysis of previous literature review and calculation of correlation has not performed in statistical tools such as SPSS. On the other hand, accumulation of more variables is also needed to understand current condition of unemployment and higher education subsidies in different countries.
Cuervo, H., & Wyn, J. (2016). An unspoken crisis: The ‘scarring effects’ of the complex nexus between education and work on two generations of young Australians. International Journal of Lifelong Education, 35(2), 122-135. Retrieved from: https://www.academia.edu/download/60030698/Cuervo___Wyn_An_unspoken_crisis___the_scarring_effects20190716-71499-1hme8b1.pdf
Dhanaraj, S., &Mahambare, V. (2019). Family structure, education and women’s employment in rural India. World Development, 115, 17-29. Retrieved from: https://www.econstor.eu/bitstream/10419/190040/1/wp2017-195.pdf
Malik, M. A. U. D., &Jabeen, H. (2020). HIGHER EDUCATION IN INDIA: Women Economic Employment. International Journal of Economics and Financial Issues, 1(3), 191-200. Retrieved from: http://arfjournals.com/abstract/35451_4_amin_malik.pdf
Norton, A., Norton, A., &Cakitaki, B. (2016). Mapping Australian higher education 2016. Retrieved from: https://www.latrobe.edu.au/__data/assets/pdf_file/0009/739206/Norton,-A-And-Cakitaki,-B.-2016-Mapping-Australian-higher-education-2016,-Grattan-Institute..pdf
Singh, P. (2017). Impact of Growth in Education Level on Female Labour Force Participation in India after Economic Reforms. International Journal of Research in Economics and Social Sciences (IJRESS), 7(12). Retrieved from: https://www.academia.edu/download/55651916/13ESSDec-5814Own.pdf
Taylor, J., Gray, M., Yap, M., Lahn, J., & Hunter, B. (2018). Higher education and the growth of Indigenous participation in professional and managerial occupations. Retrieved from: https://openresearch-repository.anu.edu.au/bitstream/1885/140387/1/CAEPRWP83_TaylorEtAl_0.pdf
Macrotrends.net, (2020). Australia Literacy Rate 1981-2020. Retrieved from: https://www.macrotrends.net/countries/AUS/australia/literacy-rateate. [Retrieved on: 28.08.2020]
Macrotrends.net, (2020). Australia Unemployment Rate 1991-2020. Retrieved from: https://www.macrotrends.net/countries/AUS/australia/unemployment-rate. [Retrieved on: 28.08.2020]
Macrotrends.net, (2020). India Literacy Rate 1981-2020. Retrieved from: https://www.macrotrends.net/countries/IND/india/literacy-rate. [Retrieved on: 28.08.2020]
Macrotrends.net, (2020). India Unemployment Rate 1991-2020. Retrieved from: https://www.macrotrends.net/countries/IND/india/unemployment-rate. [Retrieved on: 28.08.2020]